This form entered the Shotokan syllabus via Master Nakayama, Funakoshi sensei's successor. He learned it from the Shito ryu master Kenwa Mabuni (along with Gojushiho). This kata does not appear therefore in Karate Do Kyohan and was a later addition.
Some hold that the pattern was created by Aragaki sensei (1840-1920) while Patrick McCarthy notes that it is used in an least one school of Fujian Crane kung fu. What does seem credible is that the Okinawan version of this kata was created by Aragaki sensei, though who he learned the original from is unknown. Aragaki sensei is also said to have been the source of the kata Sanchin, Seisan and Sochin and was a teacher of Mabuni sensei (Shito ryu) and Kanryo Higaonna (Goju ryu).
Anko Azato is also known to have performed a version of this kata which is less linear. What is strange is that Funakoshi sensei studied with Azato sensei but didn't apparently learn this form from him or, if he did, he didn't teach it. Shotokan employs the more linear version from the Aragaki line. Historian Harry Cook speculates that Funakoshi may have studied this kata and then later forgotten it.
Master Kanazawa performing Nijushiho