Energy Minister Fergus Ewing announced consent was granted to the PNE WIND UK farm for 19 turbines to be developed with an installed capacity of 64.6 megawatts on land south of Glespin.
Under the company's community energy commitment, this is likely to benefit the local community by £8 million over the 25 year operating period.
The money will be split between the South Lanarkshire Council Renewable Energy Fund and a dedicated local fund who will use the money in consultation with community groups.
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Mr Ewing agreed with the outcome of the Public Local Inquiry (PLI) on Limekiln Wind Farm which said consent should be refused.
The Energy Minister said: "The wind farm in Kennoxhead will bring considerable benefits to the local community as well as having the capacity to power an estimated 30,208 homes. I am determined to ensure communities all over Scotland reap the benefit from renewable energy, which will help to reduce climate emissions.
"We have been clear that wind farms can only be built in the right places, and that proposed developments are subject to strict planning laws. Our policy strikes a careful balance between utilising Scotland's significant renewable energy resources whilst protecting our finest scenic landscapes and natural heritage.
"Each application is considered on its merits which is why I have refused permission for the proposed wind farm at Limekiln in line with the Reporter’s recommendation."
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