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Plans for the interchange - which would have been bigger than Bearsted itself and included warehouses the size of the village green - were first announced in March 2007 to the horror of residents in Bearsted and surrounding villages.
A Stop KIG campaign was quickly formed and was supported by the Kent Messenger, which gave away 26,000 "Say NO to KIG" car stickers.
An official planning application followed and was turned down by Maidstone Council in 2009, before the plans went to a widely predicted public inquiry held between October and December 2009.
The final decision had been expected after planning inspector Andrew Phillipson's report in March, but was delayed because of the general election.
Faversham and Mid Kent MP Hugh Robertson revealed this morning he had seen a copy of the secretary of state's decision and the inspectors report that informed it, and confirmed KIG's appeal had been rejected.
He said: "The key thing is the planning inquiry rejected the scheme and the secretary of state upheld that. It's not as if the Secretary of State had a contrary view.
"The inspector listened to the views of local people."
He listed the principal reasons for the decision as "the damage to the local environment, the proximity to the AONB, the proximity to Bearsted conservation area and Holy Cross conservation area," adding: "It was on those grounds, not on technical grounds.
Audio: Sean Furey from Campaign to Protect Rural England
"It's good news on three grounds. One; the reasons for the decision are not ones that KIG can easily correct; whatever you do on the site will have an effect.
"Two; it's good news we won outright at the public inquiry. Three; the Secretary of State has agreed with that decision.
"Those are three reasons to be very cheerful."
But he warned: "Experience has told me we mustn't drop our guard.
"We have got to work out what to do with that land to make sure this will never happen again.
"I absolutely don't want that land developed the inspectors decision in that regard is extremely helpful.
"We're not wholly out of the woods but we're jolly nearly there.
"This is absolutely fantastic news and I would like to pay tribute to Kent County Council, Maidstone Borough Council, the Joint Parishes Group.
"Stop KIG and the many thousands of individuals who helped persuade the Inspector and the Department."
Roger Vidler, chairman of the Bearsted and Thurnham Society, said: "We are all over the moon - and I'm sure a large number of champagne bottles will be opened.
"It would have had a devasting affect on this area.
"The largest warehouse in England would have been built here. The whole place would have been unrecognisable.
"It would have taken seven-years-old to build, creating a massive impact on people lives.
"The increased volume of traffic into the village would have been a disaster for this community."
Reverend Peter Daone, of Bearsted Methodist Church, said: "There has been a period of extreme tension in the area and hung over people over the past three years.
"It's like a great cloud being lifted from peoples lives."
Leader of Maidstone Council, Councillor Chris Garland said today: "This is a great result for the borough.
"The Council is keen to attract businesses to Maidstone, but we need to provide high quality jobs for local people and also protect the environment and our rural communities.
"A wide variety of individuals and groups have supported the Council's position and I have been very grateful for their contribution.
"I hope that this will now draw a line under this application and the Council's longer term planning for the borough can now move ahead."