Compared with the traditional recommendation system, sequential recommendation holds the ability of capturing the evolution of users’ dynamic interests. Many previous studies in sequential recommendation focus on the accuracy of predicting the next item that a user might interact with, while generally ignore providing explanations why the item is recommended to the user. Appropriate explanations are critical to help users adopt the recommended item, and thus improve the transparency and trustworthiness of the recommendation system. In this paper, we propose a novel Explainable Interaction-driven User Modeling (EIUM) algorithm to exploit Knowledge Graph (KG) for constructing an effective and explainable sequential recommender. Qualified semantic paths between specific user-item pair are extracted from KG. Encoding those semantic paths and learning the importance scores for each path provides the path-wise explanation for the recommendation system. Different from traditional item-level sequential modeling methods, we capture the interaction-level user dynamic preferences by modeling the sequential interactions. It is a high-level representation which contains auxiliary semantic information from KG. Furthermore, we adopt a joint learning manner for better representation learning by employing multi-modal fusion, which benefits from the structural constraints in KG and involves three kinds of modalities. Extensive experiments on the large-scale dataset show the better performance of our approach in making sequential recommendations in terms of both accuracy and explainability.