The 22-year-old defender has penned a contract until the end of the 2021/22 campaign after impressing in his 17 games for Harriers this season.
He played every minute of Kidderminster’s season before it was curtailed over funding issues for National League North – though Harriers did want to play on.
Boss Russ Penn said: “Caleb was a consistent performer for us last season so we’re pleased to get him nailed down.
“For a young lad he carries himself as a great professional on and off the pitch, and I’m confident he’ll be an asset to the club going forward.”
Richards was at Blackpool until 2018, going out on loan to Marine, Warrington Town, Southport and Leek Town.
Norwich snapped him upon his release from Blackpool, going on to have four more loan spells – at FC United of Manchester, Tampa Bay Rowdies, Yeovil Town and Kidderminster.