Built by the United African Company between 1957 and 1959, the stadium was inaugurated as Kumasi Sports Stadium in 1959, with its first stands added in 1971 and reconstructed again in 1977. In 2005 it was renamed in honor of Kumasi-born football legend Baba Yara, who played for Asante Kotoko in the late 1950s and early 1960s.

Major renovations in 2008 upgraded seating, floodlights, VIP stands, and media facilities ahead of Ghana hosting the African Cup of Nations. The stadium has hosted key events such as the 1978, 2000, and 2008 AFCON matches, numerous international qualifiers, and high-profile Premier League derbies.

However, maintenance issues emerged over the 2010s, including poor drainage, lighting failures, and dilapidated facilities, prompting CAF to withdraw accreditation in September 2024. Renovations began immediately, and by October 2024 the stadium was declared usable for local matches, though CAF re‑approval is still pending as of mid‑2025. In July 2025, the government launched a full-scale upgrade programme including pitch restoration, seating, lighting, and green energy solutions.