Ouch! That hurts to look at.

OK, you don't gave to take off all the fiberglass, just the bits closest to the damage. You do, however, have the opportunity to learn about decorating your boat with paint. But first, the repairs.

Basically, you'll need to remove all the damaged wood with your favorite tools (sander, rasp, grinder, etc.). Once you get down to solid undamaged wood, sand away the glass so you have an area of bare wood around  the damage. Wet sand the varnish off the existing glass for 3 inches around the bare wood. Soak it all with epoxy to seal the damage (use several thin coats instead of one big honking one).

Fill in the damage with epoxy/woodflour putty and let it cure. Make the putty blob big enough so that it stands proud of the boat. Once it's completely cured, sand it down to match the existing curves. When it's all smooth, cover it with glass (let it overlap 2 inches onto the unvarnished perimeter.

Fille the weave and feather the new glass onto the old. It should end up as an invisible patch.

Now come up with some paint accents or decorations to cover the repairs.

Good luck,

Laszlo

   I agree with Laszlo except that I don't think it's always necessary to coverup the repair with creative paint. If nicely executed, a repair with epoxy/woodflour putty can look quite nice. Just call it an exotic wood inlay.

   Thank you very very much!

You could trim the damaged area to a flat surface, then nicely fit and epoxy a block of interesting contrasting wood, such as Sapele or Black Walnut, figured Maple, etc, shape it and fair it, glass it and retain an all wood kayak.

   Thanks Dave10990.