The 19-year-old forward has been expected to finalise his move to the Pars, as it was reported on Sunday, and he could make his debut against Stenhousemuir in the Premier Sports Cup.
Kennedy impressed last campaign during his loan spell on loan with Inverness CT then Raith Rovers and Academy chief Craig Mulholland keen on to see him continue on that at East End Park.
Dunfermline have been keeping close tabs on Kennedy since the last campaign and, despite a change of management, have finally secured his services.
“We are looking forward to seeing Kai continue his development at Dunfermline,” Mulholland told Rangers TV.
“He did well last year at both Inverness and Raith during his first season on loan and his challenge is to take this to an even higher level this year and now make a massive contribution to a Dunfermline side who will have high ambitions for the season ahead.
“Dunfermline have been really keen to sign Kai for some time and we believe that their style of play and excellent grass surface will be conducive to Kai making a big impact.”
Scottish giants, Rangers have the option to recall 19-year-old forward in January and it will be interesting to see how he will play for Championship side, Dunfermline.
Lewis Mayo spent last campaigns with the Fifers as they made it to the playoff rounds, losing to Kennedy’s Raith before Rovers lost to Dundee in the semis.
With Kennedy’s deal at Ibrox expires until 2023, this will be a huge chance for 19-year-old forward to push his way into the first-team picture at Scottish giants and show Steven Gerrard what he can do at Ibrox in the future.
Meanwhile, the Rangers planning a move for Heerenveen defensive midfielder Joey Veerman and the reports from Scotland claim that the Scottish giants are ready to meet £8million asking price.