Peterborough United have brought Leicester City defender back to London Road on a three-month loan deal.
The 26-year-old full-back has recently returned from a long-term knee injury sustained towards the end of a 14-game spell with Posh last season.
Kennedy, who has not featured for Leicester since Sven Goran Eriksson became manager almost 12 months ago, is looking forward to playing for Peterborough again.
"When I heard about the interest I jumped at the chance," Kennedy told the club's official website.
"I have been in contact with Darren Ferguson and a few of the lads over the summer and at the start of the campaign and I am looking forward to the challenge again.
"I am fully fit now. I have been fit for six or seven weeks now so I was looking to go out on loan and this is a perfect move for me."
Posh boss Ferguson, who saw Ben Gordon return to Chelsea earlier this week, added: "It is great to have him back. He did brilliantly for us last season and it was a real shame when he got injured.
"We were a bit light in that area with Ben Gordon going back and I am delighted to have Tom back on board."