On 27 May 2005, Noeline Brown confirmed that the benefactor was Sam Chisholm.
On 25 May 2005, aged 71, Kennedy died at the Kenilworth Nursing Home, Bowral, from complications from pneumonia.
The Age newspaper, on 26 June 2005, reported John Mangos as saying that he "knew Kennedy wanted his ashes scattered at sea. And that wish was carried out." This was confirmed in a report in The Sydney Morning Herald which stated that Kennedy's ashes were scattered in the sea at Kiama attended by a group which included "Noeline Brown, Tony Sattler, John Mangos, Stuart Wagstaff, Kennedy's former housekeeper Sally Baker-Beall and her husband John, and old friends Christine and Nicholas Deeprose."
Four of Kennedy's television shows were named in the program 50 Years 50 Shows which counted-down the top 50 Australian TV shows of all time, as decided by ratings data and the opinions of 100 television industry professionals, on the Nine Network on 25 September 2005. Kennedy's In Melbourne Tonight topped the poll, Power Without Glory (15th), Blankety Blanks (20th) and Coast to Coast (42nd).