Kenny's warning came as it was revealed that there are moves within the club game to get rid of the professional tier.
The SRU yesterday released details of proposals from clubs that will be debated at the game's special general meeting later this month.
Strathaven RFC have suggested that a deadline of May should be put in place for private investors to be identified, after which professional teams should be disbanded, while Cartha QP have offered a slightly more realistic deadline of 12 months. Both clubs play in Glasgow District.
"If I was a player who was going to negotiate a contract at the moment I'd be looking to England because you need security," Kenny says in today's Herald.
"I've had calls from clubs in England about Scottish players because they know they have a chance of getting them cheap," Kenny said.
With 22 players currently out of contract, these proposals are bound to have an unsettling effect. Glasgow district chairman, Bill Nolan admitted: "I'm surprised and disappointed that a motion that would have such a potentially negative impact on the professional game in Scotland has been put forward, but that's the clubs' democratic right."