The honour recognises his services to rugby league, rugby union and the motor neurone disease community.
Sir Kevin, who began his rugby career at Waterhead, attended the investiture with his wife Jayne.
Councillors Kamran Ghafoor, Sam Al-Hamdani, Maggie Hurley, Arooj Shah and Max Woodvine issued a joint statement praising his sporting career and fundraising.
They represent The Oldham Group, Liberal Democrat Group, Royton Independent Group, Labour Group and Conservative Group respectively.
“He has spoken in the past of his love for the town, and we recognise what a great ambassador he is for our borough and the people of it,” they said.
“As a rugby legend, starting out at Waterhead, he has scaled the heights as a player in rugby league, and as a coach in rugby union.”
Sir Kevin recently completed 7 in 7: The Grand Finale, running an ultra-marathon each day for seven days and visiting all 12 Super League clubs.
The challenge raised money for MND charities in memory of his friend and former Leeds Rhinos teammate Rob Burrow, who died in 2024.
The route brought Sir Kevin back to Oldham, where residents supported him as he passed through Saddleworth and Chadderton.
The former Saddleworth School and Oldham Sixth Form College student received the borough’s highest civic honour, Honorary Freeman, in 2023.
The group leaders said: “This recognition could not be more deserved, and we would all like to place on record our recognition of a truly great Oldhamer.”
