Oxidation is loss of electrons
reduction is gain of electrons
2KI contains 2K+ and 2I- ions
2I- ====>I2 +2e-
e- represents electron which is present on the right side which indicates loss of electrons
so it is Oxidation.
Oxidation is also defined as increase in oxidation number
oxidation number of I on theleft side is 1- and that of I2 on the right side is 0. Thus we see an increase in oxidation number from -1 to 0.