The Irishman is the permanent replacement for Daryl McMahon, who resigned from the League Two side earlier this month.
Kennedy, who is 43 years old, has agreed a deal at the Moss Rose until the end of the season and will be assisted by former Grimsby Town, Crystal Palace and Exeter City defender Danny Butterfield as well as club legend Danny Whitaker.
The Silkmen are currently 22nd in the league, five points above Stevenage at the bottom of the table.
Kennedy has most recently coached with Wolves’ Under-23’s and had a spell at Macc last season under Sol Campbell. He has also previously held roles at Ipswich Town and Manchester City.
The ex-Republic of Ireland international had a lengthy playing career in which he made over 450 appearances altogether. He started out at Millwall and was snapped up by Liverpool for an initial fee of £1.5 million as a youngster in 1995, which at the time made him the most expensive teenager in British history.
Kennedy then embarked on a successful career with spells with the likes of Wimbledon, Manchester City, Wolves, Crystal Palace, Cardiff City and Ipswich Town.
He retired from playing in 2012 and has now got his first Head Coach role with Macclesfield. Kennedy faces a tough ask of keeping the Cheshire side in the Football League between now and the end of the season with the continuing off-field issues at the club.
He might only have one game of experience, albeit it against a strong Arsenal side in Leeds' 1-0 defeat at…
With the shock news that Barcelona have confirmed the signing for former-Middlesbrough forward Martin Braithwaite, Teesside Live has reported that…
Saturday's game sees home side Leeds United welcome visitors Reading to Elland Road in a match-up that pits the 2nd…