diff --git a/cmd/admin-handlers.go b/cmd/admin-handlers.go
index d539a0e8f..3bdfb8bda 100644
--- a/cmd/admin-handlers.go
+++ b/cmd/admin-handlers.go
@@ -938,6 +938,12 @@ func toAdminAPIErr(ctx context.Context, err error) APIError {
 				Description:    err.Error(),
 				HTTPStatusCode: http.StatusServiceUnavailable,
 			}
+		case errors.Is(err, crypto.ErrKESKeyExists):
+			apiErr = APIError{
+				Code:           "XMinioKMSKeyExists",
+				Description:    err.Error(),
+				HTTPStatusCode: http.StatusConflict,
+			}
 		default:
 			apiErr = errorCodes.ToAPIErrWithErr(toAdminAPIErrCode(ctx, err), err)
 		}
@@ -1090,6 +1096,28 @@ func (a adminAPIHandlers) ConsoleLogHandler(w http.ResponseWriter, r *http.Reque
 	}
 }
 
+// KMSCreateKeyHandler - POST /minio/admin/v3/kms/key/create?key-id=<master-key-id>
+func (a adminAPIHandlers) KMSCreateKeyHandler(w http.ResponseWriter, r *http.Request) {
+	ctx := newContext(r, w, "KMSCreateKey")
+	defer logger.AuditLog(w, r, "KMSCreateKey", mustGetClaimsFromToken(r))
+
+	objectAPI, _ := validateAdminReq(ctx, w, r, iampolicy.KMSCreateKeyAdminAction)
+	if objectAPI == nil {
+		return
+	}
+
+	if GlobalKMS == nil {
+		writeErrorResponseJSON(ctx, w, errorCodes.ToAPIErr(ErrKMSNotConfigured), r.URL)
+		return
+	}
+
+	if err := GlobalKMS.CreateKey(r.URL.Query().Get("key-id")); err != nil {
+		writeErrorResponseJSON(ctx, w, toAdminAPIErr(ctx, err), r.URL)
+		return
+	}
+	writeSuccessResponseHeadersOnly(w)
+}
+
 // KMSKeyStatusHandler - GET /minio/admin/v3/kms/key/status?key-id=<master-key-id>
 func (a adminAPIHandlers) KMSKeyStatusHandler(w http.ResponseWriter, r *http.Request) {
 	ctx := newContext(r, w, "KMSKeyStatus")
@@ -1108,7 +1136,7 @@ func (a adminAPIHandlers) KMSKeyStatusHandler(w http.ResponseWriter, r *http.Req
 
 	keyID := r.URL.Query().Get("key-id")
 	if keyID == "" {
-		keyID = GlobalKMS.KeyID()
+		keyID = GlobalKMS.DefaultKeyID()
 	}
 	var response = madmin.KMSKeyStatus{
 		KeyID: keyID,
@@ -1541,7 +1569,7 @@ func fetchVaultStatus(cfg config.Config) madmin.Vault {
 		vault.Status = "disabled"
 		return vault
 	}
-	keyID := GlobalKMS.KeyID()
+	keyID := GlobalKMS.DefaultKeyID()
 	kmsInfo := GlobalKMS.Info()
 
 	if kmsInfo.Endpoint == "" {
diff --git a/cmd/admin-router.go b/cmd/admin-router.go
index 0fe823f73..2f599fe03 100644
--- a/cmd/admin-router.go
+++ b/cmd/admin-router.go
@@ -197,6 +197,7 @@ func registerAdminRouter(router *mux.Router, enableConfigOps, enableIAMOps bool)
 
 		// -- KMS APIs --
 		//
+		adminRouter.Methods(http.MethodPost).Path(adminVersion+"/kms/key/create").HandlerFunc(httpTraceAll(adminAPI.KMSCreateKeyHandler)).Queries("key-id", "{key-id:.*}")
 		adminRouter.Methods(http.MethodGet).Path(adminVersion + "/kms/key/status").HandlerFunc(httpTraceAll(adminAPI.KMSKeyStatusHandler))
 
 		if !globalIsGateway {
diff --git a/cmd/crypto/kes.go b/cmd/crypto/kes.go
index 10f3c0b8d..c977dec96 100644
--- a/cmd/crypto/kes.go
+++ b/cmd/crypto/kes.go
@@ -34,9 +34,9 @@ import (
 	xnet "github.com/minio/minio/pkg/net"
 )
 
-// ErrKESKeyNotFound is the error returned a KES server
-// when a master key does not exist.
-var ErrKESKeyNotFound = NewKESError(http.StatusNotFound, "key does not exist")
+// ErrKESKeyExists is the error returned a KES server
+// when a master key does exist.
+var ErrKESKeyExists = NewKESError(http.StatusBadRequest, "key does already exist")
 
 // KesConfig contains the configuration required
 // to initialize and connect to a kes server.
@@ -134,20 +134,27 @@ func NewKes(cfg KesConfig) (KMS, error) {
 	}, nil
 }
 
-// KeyID returns the default key ID.
-func (kes *kesService) KeyID() string {
+// DefaultKeyID returns the default key ID that should be
+// used for SSE-S3 or SSE-KMS when the S3 client does not
+// provide an explicit key ID.
+func (kes *kesService) DefaultKeyID() string {
 	return kes.defaultKeyID
 }
 
-// Info returns some status information about the KMS.
+// Info returns some information about the KES,
+// configuration - like the endpoint or authentication
+// method.
 func (kes *kesService) Info() KMSInfo {
 	return KMSInfo{
 		Endpoint: kes.endpoint,
-		Name:     kes.KeyID(),
+		Name:     kes.DefaultKeyID(),
 		AuthType: "TLS",
 	}
 }
 
+// CreateKey tries to create a new master key with the given keyID.
+func (kes *kesService) CreateKey(keyID string) error { return kes.client.CreateKey(keyID) }
+
 // GenerateKey returns a new plaintext key, generated by the KMS,
 // and a sealed version of this plaintext key encrypted using the
 // named key referenced by keyID. It also binds the generated key
@@ -158,12 +165,6 @@ func (kes *kesService) GenerateKey(keyID string, ctx Context) (key [32]byte, sea
 
 	var plainKey []byte
 	plainKey, sealedKey, err = kes.client.GenerateDataKey(keyID, context.Bytes())
-	if err == ErrKESKeyNotFound { // Try to create the key if it does not exist.
-		if err = kes.client.CreateKey(keyID); err != nil {
-			return key, nil, err
-		}
-		plainKey, sealedKey, err = kes.client.GenerateDataKey(keyID, context.Bytes())
-	}
 	if err != nil {
 		return key, nil, err
 	}
@@ -197,28 +198,11 @@ func (kes *kesService) UnsealKey(keyID string, sealedKey []byte, ctx Context) (k
 	return key, nil
 }
 
-// UpdateKey re-wraps the sealedKey if the master key referenced by the keyID
-// has been changed by the KMS operator - i.e. the master key has been rotated.
-// If the master key hasn't changed since the sealedKey has been created / updated
-// it may return the same sealedKey as rotatedKey.
-//
-// The context must be same context as the one provided while
-// generating the plaintext key / sealedKey.
-func (kes *kesService) UpdateKey(keyID string, sealedKey []byte, ctx Context) ([]byte, error) {
-	_, err := kes.UnsealKey(keyID, sealedKey, ctx)
-	if err != nil {
-		return nil, err
-	}
-
-	// Currently a kes server does not support key rotation (of the same key)
-	// Therefore, we simply return the same sealedKey.
-	return sealedKey, nil
-}
-
 // kesClient implements the bare minimum functionality needed for
 // MinIO to talk to a KES server. In particular, it implements
-// GenerateDataKey (API: /v1/key/generate/) and
-// DecryptDataKey  (API: /v1/key/decrypt/).
+//   • CreateKey       (API: /v1/key/create/)
+//   • GenerateDataKey (API: /v1/key/generate/)
+//   • DecryptDataKey  (API: /v1/key/decrypt/)
 type kesClient struct {
 	addr       string
 	httpClient http.Client
diff --git a/cmd/crypto/kms.go b/cmd/crypto/kms.go
index cc7a097b9..8db9a8dd4 100644
--- a/cmd/crypto/kms.go
+++ b/cmd/crypto/kms.go
@@ -72,8 +72,14 @@ func (c Context) WriteTo(w io.Writer) (n int64, err error) {
 // data key generation and unsealing of KMS-generated
 // data keys.
 type KMS interface {
-	// KeyID - returns configured KMS key id.
-	KeyID() string
+	// DefaultKeyID returns the default master key ID. It should be
+	// used for SSE-S3 and whenever a S3 client requests SSE-KMS but
+	// does not specify an explicit SSE-KMS key ID.
+	DefaultKeyID() string
+
+	// CreateKey creates a new master key with the given key ID
+	// at the KMS.
+	CreateKey(keyID string) error
 
 	// GenerateKey generates a new random data key using
 	// the master key referenced by the keyID. It returns
@@ -90,21 +96,9 @@ type KMS interface {
 	// match the context used to generate the sealed key.
 	UnsealKey(keyID string, sealedKey []byte, context Context) (key [32]byte, err error)
 
-	// UpdateKey re-wraps the sealedKey if the master key, referenced by
-	// `keyID`, has changed in the meantime. This usually happens when the
-	// KMS operator performs a key-rotation operation of the master key.
-	// UpdateKey fails if the provided sealedKey cannot be decrypted using
-	// the master key referenced by keyID.
-	//
-	// UpdateKey makes no guarantees whatsoever about whether the returned
-	// rotatedKey is actually different from the sealedKey. If nothing has
-	// changed at the KMS or if the KMS does not support updating generated
-	// keys this method may behave like a NOP and just return the sealedKey
-	// itself.
-	UpdateKey(keyID string, sealedKey []byte, context Context) (rotatedKey []byte, err error)
-
-	// Returns KMSInfo
-	Info() (kmsInfo KMSInfo)
+	// Info returns descriptive information about the KMS,
+	// like the default key ID and authentication method.
+	Info() KMSInfo
 }
 
 type masterKeyKMS struct {
@@ -112,7 +106,8 @@ type masterKeyKMS struct {
 	masterKey [32]byte
 }
 
-// KMSInfo stores the details of KMS
+// KMSInfo contains some describing information about
+// the KMS.
 type KMSInfo struct {
 	Endpoint string
 	Name     string
@@ -125,10 +120,14 @@ type KMSInfo struct {
 // to the generated keys.
 func NewMasterKey(keyID string, key [32]byte) KMS { return &masterKeyKMS{keyID: keyID, masterKey: key} }
 
-func (kms *masterKeyKMS) KeyID() string {
+func (kms *masterKeyKMS) DefaultKeyID() string {
 	return kms.keyID
 }
 
+func (kms *masterKeyKMS) CreateKey(keyID string) error {
+	return errors.New("crypto: creating keys is not supported by a static master key")
+}
+
 func (kms *masterKeyKMS) GenerateKey(keyID string, ctx Context) (key [32]byte, sealedKey []byte, err error) {
 	if _, err = io.ReadFull(rand.Reader, key[:]); err != nil {
 		logger.CriticalIf(context.Background(), errOutOfEntropy)
@@ -166,13 +165,6 @@ func (kms *masterKeyKMS) UnsealKey(keyID string, sealedKey []byte, ctx Context)
 	return key, nil
 }
 
-func (kms *masterKeyKMS) UpdateKey(keyID string, sealedKey []byte, ctx Context) ([]byte, error) {
-	if _, err := kms.UnsealKey(keyID, sealedKey, ctx); err != nil {
-		return nil, err
-	}
-	return sealedKey, nil // The master key cannot update data keys -> Do nothing.
-}
-
 func (kms *masterKeyKMS) deriveKey(keyID string, context Context) (key [32]byte) {
 	if context == nil {
 		context = Context{}
diff --git a/cmd/crypto/kms_test.go b/cmd/crypto/kms_test.go
index b6f86be95..b2e7239ba 100644
--- a/cmd/crypto/kms_test.go
+++ b/cmd/crypto/kms_test.go
@@ -57,15 +57,6 @@ func TestMasterKeyKMS(t *testing.T) {
 		if !test.ShouldFail && !bytes.Equal(key[:], unsealedKey[:]) {
 			t.Errorf("Test %d: The generated and unsealed key differ", i)
 		}
-
-		rotatedKey, err := kms.UpdateKey(test.UnsealKeyID, sealedKey, test.UnsealContext)
-		if err == nil && test.ShouldFail {
-			t.Errorf("Test %d: KMS updated the generated key successfully but should have failed", i)
-		}
-		if !test.ShouldFail && !bytes.Equal(rotatedKey, sealedKey[:]) {
-			t.Errorf("Test %d: The updated and sealed key differ", i)
-		}
-
 	}
 }
 
diff --git a/cmd/crypto/parse_test.go b/cmd/crypto/parse_test.go
index b0aaf6ac4..a6abd2a48 100644
--- a/cmd/crypto/parse_test.go
+++ b/cmd/crypto/parse_test.go
@@ -51,8 +51,8 @@ func TestParseMasterKey(t *testing.T) {
 			if !tt.success && err == nil {
 				t.Error("Unexpected failure")
 			}
-			if err == nil && kms.KeyID() != tt.expectedKeyID {
-				t.Errorf("Expected keyID %s, got %s", tt.expectedKeyID, kms.KeyID())
+			if err == nil && kms.DefaultKeyID() != tt.expectedKeyID {
+				t.Errorf("Expected keyID %s, got %s", tt.expectedKeyID, kms.DefaultKeyID())
 			}
 		})
 	}
diff --git a/cmd/crypto/vault.go b/cmd/crypto/vault.go
index b108f68d5..8674a6179 100644
--- a/cmd/crypto/vault.go
+++ b/cmd/crypto/vault.go
@@ -17,6 +17,7 @@ package crypto
 import (
 	"bytes"
 	"encoding/base64"
+	"errors"
 	"fmt"
 	"strings"
 	"time"
@@ -190,20 +191,34 @@ func (v *vaultService) authenticate() (err error) {
 	return
 }
 
-// KeyID - vault configured keyID
-func (v *vaultService) KeyID() string {
+// DefaultKeyID returns the default key ID that should be
+// used for SSE-S3 or SSE-KMS when the S3 client does not
+// provide an explicit key ID.
+func (v *vaultService) DefaultKeyID() string {
 	return v.config.Key.Name
 }
 
-// Returns - vault info
-func (v *vaultService) Info() (kmsInfo KMSInfo) {
+// Info returns some information about the Vault,
+// configuration - like the endpoint or authentication
+// method.
+func (v *vaultService) Info() KMSInfo {
 	return KMSInfo{
 		Endpoint: v.config.Endpoint,
-		Name:     v.config.Key.Name,
+		Name:     v.DefaultKeyID(),
 		AuthType: v.config.Auth.Type,
 	}
 }
 
+// CreateKey is a stub that exists such that the Vault
+// client implements the KMS interface. It always returns
+// a not-implemented error.
+//
+// Creating keys requires a KES instance between MinIO and Vault.
+func (v *vaultService) CreateKey(keyID string) error {
+	// Creating new keys requires KES.
+	return errors.New("crypto: creating keys is not supported by Vault")
+}
+
 // GenerateKey returns a new plaintext key, generated by the KMS,
 // and a sealed version of this plaintext key encrypted using the
 // named key referenced by keyID. It also binds the generated key
diff --git a/cmd/disk-cache-backend.go b/cmd/disk-cache-backend.go
index 8c85713f4..c12829cba 100644
--- a/cmd/disk-cache-backend.go
+++ b/cmd/disk-cache-backend.go
@@ -640,14 +640,14 @@ func newCacheEncryptMetadata(bucket, object string, metadata map[string]string)
 	if globalCacheKMS == nil {
 		return nil, errKMSNotConfigured
 	}
-	key, encKey, err := globalCacheKMS.GenerateKey(globalCacheKMS.KeyID(), crypto.Context{bucket: pathJoin(bucket, object)})
+	key, encKey, err := globalCacheKMS.GenerateKey(globalCacheKMS.DefaultKeyID(), crypto.Context{bucket: pathJoin(bucket, object)})
 	if err != nil {
 		return nil, err
 	}
 
 	objectKey := crypto.GenerateKey(key, rand.Reader)
 	sealedKey = objectKey.Seal(key, crypto.GenerateIV(rand.Reader), crypto.S3.String(), bucket, object)
-	crypto.S3.CreateMetadata(metadata, globalCacheKMS.KeyID(), encKey, sealedKey)
+	crypto.S3.CreateMetadata(metadata, globalCacheKMS.DefaultKeyID(), encKey, sealedKey)
 
 	if etag, ok := metadata["etag"]; ok {
 		metadata["etag"] = hex.EncodeToString(objectKey.SealETag([]byte(etag)))
diff --git a/cmd/encryption-v1.go b/cmd/encryption-v1.go
index 27ff56a9f..b1ed6e291 100644
--- a/cmd/encryption-v1.go
+++ b/cmd/encryption-v1.go
@@ -157,12 +157,12 @@ func rotateKey(oldKey []byte, newKey []byte, bucket, object string, metadata map
 			return err
 		}
 
-		newKey, encKey, err := GlobalKMS.GenerateKey(GlobalKMS.KeyID(), crypto.Context{bucket: path.Join(bucket, object)})
+		newKey, encKey, err := GlobalKMS.GenerateKey(GlobalKMS.DefaultKeyID(), crypto.Context{bucket: path.Join(bucket, object)})
 		if err != nil {
 			return err
 		}
 		sealedKey = objectKey.Seal(newKey, crypto.GenerateIV(rand.Reader), crypto.S3.String(), bucket, object)
-		crypto.S3.CreateMetadata(metadata, GlobalKMS.KeyID(), encKey, sealedKey)
+		crypto.S3.CreateMetadata(metadata, GlobalKMS.DefaultKeyID(), encKey, sealedKey)
 		return nil
 	}
 }
@@ -173,14 +173,14 @@ func newEncryptMetadata(key []byte, bucket, object string, metadata map[string]s
 		if GlobalKMS == nil {
 			return crypto.ObjectKey{}, errKMSNotConfigured
 		}
-		key, encKey, err := GlobalKMS.GenerateKey(GlobalKMS.KeyID(), crypto.Context{bucket: path.Join(bucket, object)})
+		key, encKey, err := GlobalKMS.GenerateKey(GlobalKMS.DefaultKeyID(), crypto.Context{bucket: path.Join(bucket, object)})
 		if err != nil {
 			return crypto.ObjectKey{}, err
 		}
 
 		objectKey := crypto.GenerateKey(key, rand.Reader)
 		sealedKey = objectKey.Seal(key, crypto.GenerateIV(rand.Reader), crypto.S3.String(), bucket, object)
-		crypto.S3.CreateMetadata(metadata, GlobalKMS.KeyID(), encKey, sealedKey)
+		crypto.S3.CreateMetadata(metadata, GlobalKMS.DefaultKeyID(), encKey, sealedKey)
 		return objectKey, nil
 	}
 	var extKey [32]byte
diff --git a/pkg/iam/policy/admin-action.go b/pkg/iam/policy/admin-action.go
index b293f8435..afcbe1c72 100644
--- a/pkg/iam/policy/admin-action.go
+++ b/pkg/iam/policy/admin-action.go
@@ -41,6 +41,8 @@ const (
 	TraceAdminAction = "admin:ServerTrace"
 	// ConsoleLogAdminAction - allow listing console logs on terminal
 	ConsoleLogAdminAction = "admin:ConsoleLog"
+	// KMSCreateKeyAdminAction - allow creating a new KMS master key
+	KMSCreateKeyAdminAction = "admin:KMSCreateKey"
 	// KMSKeyStatusAdminAction - allow getting KMS key status
 	KMSKeyStatusAdminAction = "admin:KMSKeyStatus"
 	// ServerInfoAdminAction - allow listing server info
diff --git a/pkg/madmin/kms-commands.go b/pkg/madmin/kms-commands.go
index 064b4dce8..318683573 100644
--- a/pkg/madmin/kms-commands.go
+++ b/pkg/madmin/kms-commands.go
@@ -23,6 +23,28 @@ import (
 	"net/url"
 )
 
+// CreateKey tries to create a new master key with the given keyID
+// at the KMS connected to a MinIO server.
+func (adm *AdminClient) CreateKey(ctx context.Context, keyID string) error {
+	// POST /minio/admin/v3/kms/key/create?key-id=<keyID>
+	qv := url.Values{}
+	qv.Set("key-id", keyID)
+	reqData := requestData{
+		relPath:     adminAPIPrefix + "/kms/key/create",
+		queryValues: qv,
+	}
+
+	resp, err := adm.executeMethod(ctx, http.MethodPost, reqData)
+	if err != nil {
+		return err
+	}
+	defer closeResponse(resp)
+	if resp.StatusCode != http.StatusOK {
+		return httpRespToErrorResponse(resp)
+	}
+	return nil
+}
+
 // GetKeyStatus requests status information about the key referenced by keyID
 // from the KMS connected to a MinIO by performing a Admin-API request.
 // It basically hits the `/minio/admin/v3/kms/key/status` API endpoint.