"We will always love you Mum," she wrote.
Grace was 99 years old, just a few months short of her 100th birthday in September.
The tragic loss comes a few years after the death of Kerri-Anne's beloved husband John Kennerley, who passed away in 2019, after he suffered a tragic fall which left him paralysed.
Just recently, Kerri-Anne celebrated her mother's inspiring life with a sweet message that read:
"Mum has been through the depression, World War 2, gave a wonderful life to 4 kids and supported her devoted husband.
"At 98 her light still shines. Sending my love to the mums and motherly figures out there."
In a Mother's Day letter via The Daily Telegraph, Kerri-Anne spoke of how her mother landed the title 'Dancing Queen', as she was always the life of the party.
"On my Instagram page two years ago, you managed to get thousands and thousands of likes (far more than I have ever managed to get) dancing around to Meghan Trainor’s All about that Bass," she said.
"You could really groove and everyone loved you for it. You were named the Dancing Queen. You always loved to dance, in fact you met Dad at a Saturday night dance."
The former Studio 10 host added that there is "something unbelievably strong and capable" about her mother, and she is so glad to have inherited her "strength, will and survival instincts".
"I am also glad I inherited Dad’s height, he was six foot and you’re only 5’3. But you were always a powerhouse. The light is just a little softer now."
Our thoughts are with Kerri-Anne and her family during this heartbreaking time.