The town of Kajaani, initially called Cajanaburg, was established under the auspices of Count Per Brahe, who held the position of Governor-General of Finland. Located in the Kainuu region, the town was strategically positioned near Lake Kajaani, serving as a military and trade hub. The establishment of Cajanaburg came amid Finland's growing importance within the Swedish Empire, especially concerning the need for fortified settlements to maintain control over the northern territories. Kainuu was relatively underdeveloped, making it an ideal site for a new town that would facilitate Swedish interests and encourage the local economy.

Count Per Brahe's initiative included the construction of a wooden fortification, which not only defended the settlement but also attracted settlers, traders, and soldiers. The establishment reinforced Swedish authority in the area and was part of broader efforts to ignite economic growth through commerce and agriculture. The design of Cajanaburg as a fortified town featured essential infrastructures, including homes, governmental buildings, and facilities to serve the military and local populace.

Over the years, Kajaani played a crucial role in the cultural and economic development of Kainuu. The town experienced growth as trade routes were established, and agriculture flourished, propelling it into a significant regional center. The historical significance of Kajaani continued to evolve, leading to its eventual transformation into a town recognized for its administrative and economic roles in modern Finland.