In the first match, Kenya lost 12-5 to Ireland as Argentina racked up more misery with a 26-0 loss. The group’s last match seemed given but a South African try killed Shujaa’s hopes.
McGrath, who replaced Innocent Simiyu, said work was underway to bring the national team into his place.
“We gave away possession cheaply and dropped the ball a lot and first we have to work to keep our possession. It’s still a long way to go and work in progress,” said McGrath.
Shujaa was knocked out of the main cup competition after defeats to Ireland and Argentina.
France punished Kenya with a fourth consecutive defeat in the 13th place play-off as the loss to Japan capped the London 7s campaign.
Kenya have 38 points in the opening rounds of seven, including just one in the last two events in Vancouver and Toulouse. They are seven points from the relegation zone.
Shujaa also left the London 7s campaign after picking up a point.
In the local national circuit, the Strathmore Leos beat champions Kabeberi 7s KCB to win the Christie 7s at the RFUEA ground in Nairobi.
The Students ended the Bankers’ 11-game winning streak in this year’s seven-man circuit. The focus now shifts to Mombasa for the Driftwood Sevens before heading to the lakeside town of Kisumu for the Dala Sevens.