Kawasaki and Mitsubishi were asked by the Japanese Army in 1936 to develop a monoplane that had:
- Single engine
- Carry 660 - 990 lbs / 661 - 992 lbs / 300 - 450 kg of bombs
- Cruise at 186 mph / 187.5 mph / 300 kph
- Fly between 6,500' and 13,000' / 6,560' - 13,125' / 2,000 - 4,000 m
- Maximum speed of 248.5 mph / 250 mph / 400 kph at 9,845' / 10,000' / 3,000 m
- Armament of two machine guns, one forward firing the other a flexible rear firing
Isamu Imashi and Shiro Ota designed the plane with a liquid cooled engine. The Mitsubishi and Kawasaki designs were similar and the Mitsubishi Ki-30 was put into production. With war coming it was decided to produce both of them side by side.
The Ki-32 was of an all metal construction with fabric covered control surfaces.
The Kawasaki Ki-32 was the last bomber used by the Japanese Army that used a liquid cooled engine as they were more vulnerable than air cooled.
The landing gear was fixed.
The wings were mid-wing cantilevers.