Kennedy left Spotland to join the Foxes in the summer but has failed to settle at the Walkers Stadium.
The left-back said: "It has been frustrating because we have had three different managers and I haven't played many games.
"It has been a stop start season for me with a couple of Carling Cup games and one in the league and I haven't been playing much football and for any player that's not good."
Dale boss Keith Hill said: "The chain of events at Leicester City haven't gone in Tom's favour and he has been unfortunate.
"There is no doubt TK is a Championship player and we are lucky to have his services back here and it is a place he wanted to come back to and that was important too."