The establishment of Kotka came during a period of significant socio-economic change in Finland. The Senate of the Grand Duchy of Finland recognized the potential of Kotka's strategic location and its geographical advantages for trade and maritime activities. By declaring it a city, the Senate aimed to bolster local governance and attract investment in infrastructure, which was essential for the growing demands of urbanization in the late 19th century. Kotka's location at the mouth of the Kymi River provided easy access for shipping routes, making it an ideal site for economic expansion.

The Senate's initiative also reflected broader developments in Finnish society. The era was marked by a shift from agrarian economies towards industrialization, which required new urban centers to evolve and support these changes. Establishing Kotka as a city facilitated better administration, thus enabling coordinated development efforts. The decision included provisions for city planning and development of essential services, which would impact the way the community was structured and grew.

Moreover, the declaration served as a foundation for Kotka’s future identity. As it transformed from a parish area into a bustling urban center, the city attracted inhabitants and businesses alike, contributing to its economic and cultural life. In subsequent decades, Kotka would develop into an important hub for shipbuilding and maritime industries, earning a significant place in Finland's economic landscape.