Kennedy won the Open in 2011 when it was played at Clearwater in Christchurch but didn't return to defend his title as the quality of the fields dwindled. The fields have improved in recent times though given the boost in prizemoney, while the tournament also has a pro-am format.
Outside of Kennedy, another Australian, Brendan Jones, who is the highest earning non-Japanese player on that tour with career earnings of just on $10m, will also play in Queenstown.
They are backed up by leading Kiwis Michael Hendry and David Smail, both of whom have full status on the Japan Tour.
New Zealand Open tournament director Michael Glading was excited about the group of players set to challenge for this year's title.
"There are many world-class players coming from the Japan Tour, and we're expecting many of them to be 'in the hunt' when the tournament heads into the final day on Sunday," he said.
" The relationship with the Japan Tour is a huge boost to our tournament both competitively and commercially, and we're thrilled that such a high quality group has taken up the opportunity to play this year."
The New Zealand Open will be played at The Hills and Millbrook Resort from March 12-15 and will be broadcast on Sky TV.