When a Kakoune session begins, recursively search through the current working directory and its parent directories for a file named .kakrc. The first such file is sourced for additional configuration. The directory containing this file, if found, is accessible via %opt{project_directory}.
This plugin behaves similarly to the Vim option exrc.
For security, this feature is disabled unless explicity enabled by setting source_local_kakrc to true.
With plug.kak:
plug "dgmulf/local-kakrc" config %{
set-option global source_local_kakrc true
}