The Kenya Sevens side has been broken up with a new selection process to be put in place for next season.
According to Kenyan newspaper The Star, the move comes after the player strike and a disappointing season during last year's Sevens World Series, when Kenya finished 13th.
Each of the players contracts expired last month and they have now been told to go back to their clubs to win selection.
“We have told the players they go and play for their clubs in the national circuit and come September, we will have selected a squad that will play in the Olympic Games qualifiers and World Rugby Sevens that starts in December in Dubai,” said KRU chairman Richard Omwela.
“Discipline must be restored and those who are not ready to toe the line can leave in peace.
“I am aware some of the players often get their way which is not a tenable situation.
“All the players will be under one contract unlike the previous arrangement, where contracts were classified under three tiers.
“The upper most in our minds is that we qualify for the Olympics and I believe strongly that with the players selected, we will qualify for the games."
Kenya Sevens team manager Steve Sewe, assistant coach Vuyo Zanqwa and strength and conditioning coach Graham Bentz all faced disciplinary hearings this week.