Paul John's side bowed at the Bowl semi-final stage in the Wellington Sevens.
Wales bowed out of a disappointing Herts Sevens tournament in New Zealand when Kenya dumped them out of the Bowl at the semi-final stage.
Paul John's men picked up five points from the tournament to slip down the overall rankings one place to eighth while New Zealand top the table on 73 points after beating closest rivals Fiji 24-7 to retain their Wellington title and take an outright lead in the HSBC Sevens World Series after four of nine rounds.
Having been knocked out of the main draw on day one, Wales were hopeful of a successful Bowl campaign on day two.
Wales edged a tense quarter final against United States with tries by Matthew Pewtner and Kristian Phillips securing passage to the semi finals with a 10-0 victory.
But Kenya, who are slowly getting back to the type of form which made them such dangerous opponents a couple of years ago, brushed Wales aside 17-7 in the semi-final to end any hopes of silverware for the men in red.
Kenya scored two tries in the first half through Sidney Ashioya and Leon Adonga with Nato Linus Simiyu adding a conversion to put the Africans firmly in control at 12-0.
Wales battled back in the second half with Pewtner racing over with Alex Walker adding the extras. With Wales slowly but surely getting back into the game, Kenya took the sting out of the comeback with Simiyu knocking over a penalty to guide Kenya to a 17-7 win.
The Kenyans went on to win the Bowl final against Australia to claim their biggest haul of points in the series so far (8) while Wales were left to lick their wounds as they focus on the next leg in Las Vegas next week.
Wales Sevens are looking to re-group after a disappointing tournament last time out in South Africa. The next double leg in New Zealand and Las Vegas offers Gareth Williams a chance to redeem themselves.
Wales Women's head coach Rhys Edwards was at Llandovery to see the conclusion of an entertaining Women's Regional championship where any one of three teams were in contention for title glory on the last day of action.
Christmas has come early at Glynneath rugby club, one of a number around Wales who have received an array of merchandise and equipment this December courtesy of the Welsh Rugby Union's £750,000 participation points scheme.
The WRU have been delivering on the scheme - which gives individual clubs access to up to £5,000 worth of supplies and equipment each for the 2014/2015 season - over the last two weeks and today (Friday) were received by a special guest in Glynneath, club president and pitch marker Max Boyce.
As the countdown continues for RWC2015, Tournament Chief Executive Debbie Jevans visited the Millennium Stadium to discuss preparations for the eight matches and reveal the positive news that 100,000 tickets for games at the home of Welsh rugby have sold in the last seven days.
Jason Harries is targeting a first win on the World Series circuit this season with Wales. The series returns to action this weekend in Dubai where Harries is part of a team hoping to build from its efforts in round one in October.
Wales skipper Jevon Groves says his side have addressed a few points from Gold Coast and aim to 'hit the ground running' in the next two rounds of the World Series, kicking off with this weekend in Dubai before heading off to South Africa next week.
Wales Sevens manager Steff Thomas is hopeful his side can build from a quarter-final spot in the opening round of the World Series in Australia when his side take part in the forthcoming double header in Dubai and South Africa.