The ceremony was held in Boeing Shanghai's hangar next to Pudong Airport.
"Boeing Shanghai is an important part of our still growing presence in China," Marc Allen, president of Boeing China, said. "This major conversion milestone is not only the latest development of Boeing Shanghai, but also a further step in Boeing's overarching partnership with China's aviation industry, which now dates back more than 40 years."
Boeing Shanghai began the conversion work on Kenya Airways' 737-300 in December and celebrated the cargo door cutting completion in February.
The modification was conducted under an AEI Supplemental Type Certificate, based on engineering data licensed from Boeing.
The second 737-300 from Kenya Airways has been inducted for conversion and is scheduled for redelivery in June.