"We decided for a couple of the rough gravel events I would step out of the car. We have tried it for one and it hasn't really gained enough that I wanted to get back in the car for the second one. That leaves us only two events before I would be retiring anyway.
"We have had a really bad start to the year - things just haven't gone our way and it is just one of those years where if you didn't have bad luck, you'd have no luck at all.
"I could see a spark of positivity with what was going on in Portugal so it just became common sense that I might as well stay out now."
While the move has long been planned with Kennard winding down his long and distinguished career, he does admit to feeling a little sad.
Paddon burst onto the domestic scene with a huge dream of one day competing in WRC - with Kennard helping him along the 30-year-old has reached the pinnacle of the sport.
"It is emotional for sure - it has been 12 years now," Kennard said. "In the beginning I never had any expectation even at the age I was back then that I was going to end up staying in the car this long.
"To get to the point where you are in a manufacturer team, where together we have won a world championship rally and out there setting fastest stage times - it has been a fantastic thing for me."