diff --git a/cmd/common-main.go b/cmd/common-main.go
index 47dce73d5..e0f1f1e06 100644
--- a/cmd/common-main.go
+++ b/cmd/common-main.go
@@ -784,17 +784,22 @@ func handleCommonEnvVars() {
 		}
 		globalActiveCred = cred
 	}
+}
 
+// Initialize KMS global variable after valiadating and loading the configuration.
+// It depends on KMS env variables and global cli flags.
+func handleKMSConfig() {
 	switch {
 	case env.IsSet(config.EnvKMSSecretKey) && env.IsSet(config.EnvKESEndpoint):
 		logger.Fatal(errors.New("ambigious KMS configuration"), fmt.Sprintf("The environment contains %q as well as %q", config.EnvKMSSecretKey, config.EnvKESEndpoint))
 	}
 
 	if env.IsSet(config.EnvKMSSecretKey) {
-		GlobalKMS, err = kms.Parse(env.Get(config.EnvKMSSecretKey, ""))
+		KMS, err := kms.Parse(env.Get(config.EnvKMSSecretKey, ""))
 		if err != nil {
 			logger.Fatal(err, "Unable to parse the KMS secret key inherited from the shell environment")
 		}
+		GlobalKMS = KMS
 	}
 	if env.IsSet(config.EnvKESEndpoint) {
 		var endpoints []string
diff --git a/cmd/gateway-main.go b/cmd/gateway-main.go
index 9e38c35a7..f4c9a2af9 100644
--- a/cmd/gateway-main.go
+++ b/cmd/gateway-main.go
@@ -212,6 +212,9 @@ func StartGateway(ctx *cli.Context, gw Gateway) {
 	// Handle gateway specific env
 	gatewayHandleEnvVars()
 
+	// Initialize KMS configuration
+	handleKMSConfig()
+
 	// Set system resources to maximum.
 	setMaxResources()
 
diff --git a/cmd/server-main.go b/cmd/server-main.go
index 47a3f07ad..e88f021de 100644
--- a/cmd/server-main.go
+++ b/cmd/server-main.go
@@ -435,6 +435,9 @@ func serverMain(ctx *cli.Context) {
 	// Handle all server command args.
 	serverHandleCmdArgs(ctx)
 
+	// Initialize KMS configuration
+	handleKMSConfig()
+
 	// Set node name, only set for distributed setup.
 	globalConsoleSys.SetNodeName(globalLocalNodeName)