Kennedy opted to take a break from sevens after Ireland's quarter-final exit against Fiji at Paris 2024.
He missed what proved to be the men's sevens' last tournament in Los Angeles earlier this month, when they finished 11th and suffered relegation in the World SVNS Series.
"The financial/cost-cutting excuse is complete smoke and mirrors, masquerading the fact that every Rugby World Cup year unions run at a major loss due to a lack of November match revenue," continued the statement from the wing, who won the World Rugby award in 2022.
"Between funding from World Rugby for being on the World Series, Sport Ireland funding from Olympic success and sponsorship funding, no other programme outside the men's 15s brings in anywhere near the revenue."
Kennedy was also critical of the money being spent by the likes of Leinster on short-term contracts in the men's 15-a-side game.
Leinster brought in New Zealand international Jordie Barrett this season and are set to add international team-mate Rieko Ioane after the November internationals.
"No mention of the millions paid to bring foreign players over on short-term contracts and the budget to pay for committee members travelling to Six Nations games and tours with lunches and dinners – far more than the whole 7s budget," Kennedy added.
"The disrespect that the IRFU have shown to Sport Ireland and the Irish Olympic Committee after all their years of funding, utterly disgraceful."
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