SAFETY FIRST: Protective gloves and eyewear are recommended at this point.
Removal
Remove the rear wheel. See the Rear Wheel Removal topic for more information.
To remove the rear wheel bearings remove the outer dust seal using a suitable seal puller or a large flat blade screwdriver. Always replace the dust seals if you are replacing the wheel bearings.
Remove the snap ring that holds the bearing into place using a pair of internal snap ring pliers.
Use a bearing removal tool to extract the front wheel bearings or drive them out using a punch and hammer. The wheel in the photo on the right is not from the Kawasaki KLR650, but the procedures are the same.
Installation
NOTE: Before installing the new wheel bearings, put the bearings in a freezer for one hour, this will make installation easier.
Install the right side wheel bearing and then the distance collar followed by the left side bearing.
Before installing the rear wheel dust seals, smear a waterproof grease on the lip and the back side of the seal.
Install the left side wheel bearing and then the distance collar followed by the right side bearing. Use either a bearing driver or a socket with the same outside diameter as the OD of the bearing. Using a seal driver install the dust seals. If a seal driver is not available, you can use a socket that fits the outer diameter of the dust seal.
Reinstall the rear wheel. See the Rear Wheel Installation topic for more information.