Cerium-based intermetallics are currently attracting much interest as a possible alternative to existing high-performance magnets containing scarce heavy rare-earth elements. However, the intrinsic magnetic properties of Ce in these systems are poorly understood due to the difficulty of a quantitative description of the Kondo effect, a many-body phenomenon where conduction electrons screen out the Ce-4f moment. Here, we show that the Ce-4f shell in Ce-Fe intermetallics is partially Kondo screened. The Kondo scale is dramatically enhanced by nitrogen interstitials completely suppressing the Ce-4f contribution to the magnetic anisotropy, in striking contrast to the effect of nitrogenation in isostructural intermetallics containing other rare-earth elements. We determine the full temperature dependence of the Ce-4f single-ion anisotropy and show that even unscreened Ce-4f moments contribute little to the room-temperature intrinsic magnetic hardness. Our study thus establishes fundamental constraints on the potential of cerium-based permanent magnet intermetallics.