Earlier, Srimantha Wijeratne's maiden List-A hundred had pushed Canada to 194 for 8 as the opposition spinners Basant Regmi (3/34) and Lamichhane (2/40) tightened the noose on the batsmen.
Nepal (4-1) was reduced to its last wicket in the 43rd over at 144 for eight. After Pervez bowled a wide, KC scampered for a single in the final ball to ignite wild celebrations in the Nepali camp.
"I can't speak, the last wicket made 50 odd runs, cricket is just a victor today", Khadka said, reported AFP. "One in a million times you would win those games".
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"I feel for Canada", said Nepal captain Paras Khadka.
Amir Hayat (3-49), Ahmed Raza (2-30) and Rohan Mustafa (2-30) all chipped in with vital wickets as Namibia fought until the end losing by 19 runs.
The qualification for the 2019 World Cup would be tough for the associate members as only two teams will join the eight others in a new ten-team World Cup.
Nepal and UAE have both secured a spot for themselves at the ICC World Cup Qualifier tournament to be held in Zimbabwe this March. Amid some tight bowling, Sandeep grabbed another two and Basant got one to make it 90/4 in 27th over. The match was in ICC World Cricket League on Wednesday.
The defeat for Canada was heartbreaking as they slipped to third place behind the UAE on a poor net run rate.