Shujaa lost 21-12 to Fiji in the Singapore Sevens final, their first loss since 2021.
Despite the strong finish in the sixth and final regular season leg, Kenya missed the top eight and will now compete in a relegation playoff in Los Angeles on May 3-4.
Shujaa will battle the bottom three core teams and the top four from the Challenger Series for four coveted spots in the World Rugby Sevens Series.