It comes after pro-Palestine protesters staged demonstrations and set up encampments against the war in Gaza at the university last year.
Stella Swain, youth and student officer at the Palestine Solidarity Campaign, said it was a “massive victory”.
Student-led group Cambridge for Palestine has called on the university to divest from companies “complicit in the ethnic cleansing of Palestine”.
The policy builds on discussions about the relationship between the college’s investments and its values, which were “prompted by the occupation of Ukraine and Palestinian territories”.
Gillian Tett, provost of King’s College, said: “This is a positive result from a process that engaged voices from all areas of our community”.
The college said the changes could be in place by the end of the year.
Ms Swain said: “This is a massive victory, and speaks to the incredible power and commitment of student campaigning, at King’s College and across the country”.
“If King’s College, at the heart of Cambridge, can finally listen to its students and divest from the arms industry and companies complicit in the illegal occupation of Palestine, then every university can act to ensure they are on the right side of history”.
Source: BBC
