This means Kenya will miss out on the continental showpiece, which starts in Accra, Ghana from Nov. 17.
Nick Mwendwa, president of the Football Kenya Federation (FKF) said they will appeal against the decision made by CAF.
"It is a blow to the team, because the girls were in camp preparing for the trip to Ghana. We are considering appealing against the latest decision by CAF. Our lawyers may put in a case with the Court of Sports Administration (CAS) to stop the tournament from kicking-off until we get justice," Mwendwa said here on Thursday.
Kenya was awarded the chance to play in the AWCON after it successfully launched a complaint over Equatorial Guinea's use of ineligible player Annette Jacky Messomo, who played for the team in the AWCON qualifiers.
However, the CAF's appeal board voted to confirm that Messomo is eligible to play for Equatorial Guinea during a meeting in Cairo.
If the decision remains unchanged, Equatorial Guinea will take up the position of Kenya in Pool B together with Zambia, Nigeria and South Africa. Pool A has hosts Ghana, Mali, Cameroon and Algeria.