Despite winning two straight games; 22-19 over Fiji and 24-10 over Samoa in games two and three in Pool A, Kenya was denied a place in Paris 7s Cup quarters after Fiji beat New Zealand 26-17 in the final pool game.
That win had Fiji, New Zealand and Kenya tied on seven points and due to point difference Shujaa ended up third to miss out on Cup quarters.
Kenya went down 24-5 to New Zealand in the opening game as Fiji knocked out Samoa 35-12.
New Zealand's won its second game 22-17 over Samoa who propped the table with no wins.
Kenya will now contest the Challenge Trophy for a second straight tournament just as last weekend at London.
Main Cup quarters
Fiji Vs England
Ireland Vs Canada
New Zealand Vs USA
South Africa Vs Spain
Challenge trophy quarters
Kenya Vs Argentina
Australia Vs Russia
France Vs Samoa
Scotland Vs Wales