Justin Trudeau's office confirms that Kenny informed the Liberal leader on Wednesday that he was recusing himself from caucus "pending the outcome of an investigation by the Senate administration."
Sources tell The Canadian Press the investigation involves a complaint of sexual harassment.
Kenny had little comment on the allegation that has been levelled against him.
"There is a Senate process that is under way looking into the allegations that prohibits me or anyone else involved from commenting,"Kenney said in an email.
"All I can say is at the end of the day I expect to be vindicated."
A CBC report does not identify the specific complainant, but it does reference an earlier interview with a woman who worked for Kenny for two months over the summer.
CBC reported the woman said in the interview that Kenny made sexual comments, asked her to wear high-heeled shoes and repeatedly put his hand on her waist when meeting alone with her in his office.
Kenny, a former staffer in the Prime Minister's Office under Pierre Trudeau, has been a senator since he was appointed to the upper chamber in 1984.
He's perhaps best known for his work on defence and security issues, serving as chairman of the Senate committee on national security and defence from 2001 to 2009.
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