A town located in the Interior Division of Sabah, it is home to the Kadazan or Dusun Tatana community as the largest single ethnic group. Kuala Penyu is located on the Klias Peninsula, which was originally covered with mangrove swamp forests. Administratively, this district is divided into three parts—Sitompok, Bundu and Menumbok.
It is one of the gateways to Pulau Tiga Survivor Island. Kuala Penyu is famous for its beaches, especially the Tempurung Beach, Sawangan Beach and Sungai Labuan Waterfront. Kuala Penyu is also a district dotted by sago trees which are widely planted throughout the area. In fact, the sago plant is such a popular product in the district that there is an annual celebration for it called the Pesta Rumbia.