Fr Kennedy's last service will be the week after Easter, on Sunday April 19, the Sydney Morning Herald notes.
When he hands over the keys and leaves the building, the vast bulk of the church community plans to move with their priest 200 metres down the road to a temporary home at the Trades and Labour Council (TLC) building.
Fr Kennedy jokingly refers to it as the new haven for "Totally Lapsed Catholics" - he calls his church community "St Mary's in exile".
But his smile fades when he talks about his last Easter at St Mary's.
"We don't want to become a cult," he said.
"We want to continue to say we are within the Catholic community.
"But it's ironic this should be happening to us at Easter, which is about Jesus who stood with the poor, the broken and the excluded, against the injustices perpetrated by the religious authorities of his day."
Fr Kennedy said his hope for Easter was for his community to stay strong, gospel-centred and to stand up against injustice.
"Our mission statement is to act justly, love tenderly and to walk humbly with our God," said Fr Kennedy.
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(Source: CTHN)