The 55-year-old, who joined the Blues from Manchester United soon after owner Roman Abramovich's takeover was completed, said he will stay on as a non-executive director and represent Chelsea on various Uefa and the European Clubs' Association committees.
However, he will be leave day-to-day control of affairs at the club when he quits on October 31st.
Kenyon said: 'I am extremely proud of my time at Chelsea and of the friendships I have forged with everyone here.
'I have been in football for 15 years and I can say with great certainty and pleasure the experience at Chelsea is one of the best I have had.
'When I joined Chelsea it was an incredible challenge and together with all the staff, the players, the board and Roman, I think we have really built a club - in a relatively short space of time - that can be in the forefront of European football for many years to come.
'That is a major achievement.'
Kenyon said he intends to take some time off before considering his next move, but added: 'I am certain I have at least one major challenge left in me.
'I would like to wish Chelsea the best of luck for the rest of the season. I am sure Carlo can lead the team to more great things.'
Chelsea chairman Bruce Buck added: 'Peter has done a fantastic job for Chelsea in the last five-and-a-half years and has been absolutely central to the success on and off the field we have had during that time.
'Without his football knowledge and business acumen Chelsea would not be where we are today.'
No announcement has been made on Kenyon's successor as Chelsea chief executive.
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