Measurements of magneto-thermopower (S(H, T)) of interfacial delta doped LaTiO$_3$/SrTiO$_3$ (LTO/STO) heterostructure by an iso-structural antiferromagnetic perovskite LaCrO$_3$ are reported. The thermoelectric power of the pure LTO/STO interface at 300 K is $approx$ 118 $mu$V/K, but increases dramatically on $delta$-doping. The observed linear temperature dependence of S(T) over the temperature range 100 K to 300 K is in agreement with the theory of diffusion thermopower of a two-dimensional electron gas. The S(T) displays a distinct enhancement in the temperature range (T $<$ 100 K) where the sheet resistance shows a Kondo-type minimum. We attributed this maximum in S(T) to Kondo scattering of conduction electron by localized impurity spins at the interface. The suppression of S by a magnetic field, and the isotropic nature of the suppression in out-of-plane and in-plane field geometries further strengthen the Kondo model based interpretation of S(H, T).