This article uses material from general sources and not specifically D`awat ones.
The city of Kufah is generally regarded as being a centre of Shia history and activity. Molana Ali (a.s.) moved to Kufah in 36 H/ 656 AD. This was just after he had mobilized armies for the battle of Al-Jamal (the camel) against forces from Basra; so-called because Aaisha watched the battle from the back of her camel. The battle of Siffin took place against Muawiya and the Syrians.
Molana Ali was slain in Kufa, Imam Hasan (a.s.) assumed and relinquished the caliphate from here and it was from here, of-course, that the massacre of Imam Husain (a.s.) was co-ordinated by Ibn Ziyad (l.a.). Later, from Kufa, the movement of retribution against the Umayyads was led by Mukhtar.
The city of Kufah is said to have been founded during the time of Umar in the year 17 H / 638 AD. It was originally formed as a garrison township for the armies that had invaded and conquered and that were now required to stay there. Two or three sites were tried before the army commander - S`ad bin Abi Waqqaas , with the help of Salman al-Farisi (a.s.) and Huzefa al-Yamaan (a.s.) chose this plain on the west bank of the Euphrates. Kufah was chosen for its suitability to the Arab way of life - the choice only made after a thorough two year search. Around 20000 -25000 people formed this new city and were initially divided into tribal categories - a large plot of land at the centre of the new city was demarcated for the masjid. It was ordered that the masjid be built to accommodate up to 40 000 troops that were expected to be deployed there. It is said that of these initial settlers 70 had fought in the first battle of Islam at Badr - Ammar bin Yasir was (a.s.) appointed governor. It is reckoned that within a decade the population had risen to over 100 000 a number that does not include those who occupied the sawad - rich agricultural land - of Kufah.
Source - The Origins and Early Development of Shi`a Islam
Aqamola (tus) has related that Khidr nabi (a.s.) informed Molana Ali (a.s.) that Kufah was named Kufah because a man named Kufaan was responsible for digging the river there.
Source - Karachi Ashara