Kennedy was actually sold by Dalglish when he first took charge of Liverpool in 1985.
"He knows exactly what he's doing," the former left-back told Liverpoolfc.tv. "As a rookie manager in 1985 he made decisions about the team and aging full-backs like me and Phil Neal.
"We were thinking, 'Is he making the right decision?' Then they won the double. He brought in Steve Nicol and Jim Beglin, and Barry Venison came to the club as well.
"He generally gets things right, and he's got some good people with him, like Steve Clarke, Sammy Lee and Damien Comolli."