One context contains a cluster, namespace, and user. According to the current context, the client will use the specified user information and namespace to send requests to the cluster. To set up a context, we will use the kubectl config set-context <CONTEXT_NAME> --user=<CREDENTIAL_NAME> --namespace=<NAMESPACE> --cluster=<CLUSTER_NAME> command to create or update it:

// in localhost cluster, create a context for accessing local cluster's default namespace
$ kubectl config set-context default/local/myself --user=myself@local --namespace=default --cluster=local-cluster
Context "default/local/myself" created.
// furthermore, create another context for remote cluster
$ kubectl config set-context default/remote/myself --user=myself@remote --namespace=default --cluster=remote-cluster
Context "default/remote/myself" created.

Let's check our current kubeconfig. We can find two new contexts:

$ kubectl config view
...
contexts:
- context:
    cluster: local-cluster
    namespace: default
    user: myself@local
  name: default/local/myself
- context:
    cluster: remote-cluster
    namespace: default
    user: myself@remote
  name: default/remote/myself
...

After creating contexts, we can switch contexts in order to manage different clusters. Here, we will use the kubectl config use-context <CONTEXT_NAME> command:

// check current context
$ kubectl config current-context
kubernetes-admin@kubernetes

// use the new local context instead
$ kubectl config use-context default/local/myself
Switched to context "default/local/myself".
// check resource for the status of context
$ kubectl get pod
NAME                           READY     STATUS    RESTARTS   AGE
local-nginx-6484bbb57d-xpjp2   1/1       Running   0          2h
local-nginx-6484bbb57d-z4qgp   1/1       Running   0          2h

Yes, it looks fine. How about if we switch to the context with the remote cluster setting:

// switch to the context of remote cluster
$ kubectl config use-context default/remote/myself
Switched to context "default/remote/myself".
// check the pods
$ kubectl get pod
NAME                            READY     STATUS    RESTARTS   AGE
remote-nginx-5dd7b9cb7d-fxr9m   1/1       Running   0          2h
remote-nginx-5dd7b9cb7d-gj2ft   1/1       Running   0          2h
remote-nginx-5dd7b9cb7d-h7lmj   1/1       Running   0          2h
remote-nginx-5dd7b9cb7d-hz766   1/1       Running   0          2h

All the operations we have done are in the localhost cluster. kubeconfig makes the scenario of working on multiple clusters with multiple users easier.