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When Schweizerische Industrie Gesellschaft (SIG) weapons designers Pal de Kiraly and Gotthard End developed their seventh light machine gun design, they promptly designated it KE-7 after themselves. The production began in 1929. Because the design never won a military contract with the Swiss Army, most of them were exported to China, while Latin America purchased a fair number as well. Many of these weapons saw action against the Japanese in the hands of Chinese troops. Production ceased prior to the start of the European War in 1939.

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