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Kenny was a former co-worker of Jim Walsh, who called in a favor to get him to assist Valerie Malone with her financial records for The Peach Pit After Dark. Kenny was going through a separation with his wife, Dianne Bannerman, when he and Valerie became romantically involved.
It wasn't long before Kenny started acting flaky, spending time with both Valerie and Dianne, using his son, Michael Bannerman, as an excuse. Once Valerie realized Kenny was never going to leave his wife, she faked a pregnancy and extorted him for money.
He resisted paying her at first, but when Valerie showed up on his doorstep and gave Dianne some diapers, it caused friction in the household and Kenny paid Valerie to have an abortion. Later, after Kelly saw Kenny at a restaurant when he was supposed to be with Valerie during her abortion, Kelly suspected Valerie made the whole thing up.
After Brandon Walsh was informed of the situation, he met with Kenny and the suspicions were founded. Kenny didn't care, just as long as Valerie left him alone. Brandon was enraged and demanded she give the money back or find a new place to live. Valerie reluctantly returned the money to Kenny and he was not seen again.