The area had been under the control of several warlords since the 1960s. The army was formed on March 12, 1989, after the local Communist Party of Burma leader, Phone Kyar Shin (Peng Jia Sheng), who had been with the communists since 1968, broke away and formed the MNDAA. Along with his brother, Peng Jiafu, they became the new unit in Kokang. The strength of the army is between 1,500 and 2,000 men.