Two other former Maple Leafs will also be named at the team's inaugural fan festival in September.
"Legends Row" is set to be unveiled Sept. 6 in Maple Leaf Square, just outside the Air Canada Centre arena where the team plays. The plans includes a 30-foot granite bench where past players will be honoured.
It will grow as the team builds up to its centennial season in 2016-'17.
Kennedy spent his entire 14-year NHL career with the Maple Leafs, including eight seasons as the team's captain. He won five Stanley Cups, a Hart Trophy as the league's most valuable player in 1955, and was inducted into the Hockey Hall of Fame in 1966.
Kennedy’s son Mark and his family were on hand for Thursday's announcement.
“We were thrilled when informed of the idea of 'Legends Row' and even more honoured when they said that Dad would be among the first players to be included,” said Kennedy. “I know that the idea of being immortalized in his No. 9 Maple Leafs sweater, alongside some of the best players to ever play for this great franchise, would bring a tear to his eye.”