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The credits roll after defeating him, so I assume he is the champion.

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To answer the question "IS Red the Kanto Champion?"


To summarize the events of the first two generations,
Red becomes Kanto champion after collecting all the Kanto badges, defeating the elite four and his rival, Green. After the events of Generation I, Red steps down as champion to continue his journey. Lance takes over as the Kanto champion.

So is Red the Kanto champion? NO! Red WAS the Kanto champion, Lance IS the Kanto Champion.

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Red still holds the title of Pokemon Champion, he just decides to not take over league duties, just like all other playable characters.