The 22-year-old's success in the west paved the way for his inclusion in Scotland's pre 2013 RBS 6 Nations training camp before he excelled in his first senior representative match for Scotland A in the win over England Saxons at Kingston Park.
Kennedy has showcased his talents in the black and red with three appearances since his return to Murrayfield and expressed his delight at securing his first senior contract, which will keep him at the club until 2015.
He said: "I'm really chuffed. I've come through the age-grades on the EDP programme and have kept working and developing from there. It's another step in the right direction for me as a player and I'm really enjoying it.
"The experience I gained from last season was invaluable. As an EDP player all you want is game time and I got more than I expected, which was brilliant.
"I was surprised to be named in the Scotland training squad but, at the same time, I didn't think it was out of my reach and never felt out of place. To train with the squad and start for Scotland A was incredible, especially as I was still an EDP.
"As a senior player, more is now expected of me off the field, like helping the younger players find their feet, especially as I've just come out of the programme. I want to lead by example.
"But nothing changes in terms of how hard I work or how much I want to improve. I always want to be better, challenge and become the starting nine.
"When you look at the Edinburgh squad it's a really good team with some great players. We all know we've a tough pre-season in-store but I can't wait to get the boots on and get out there."
The former Lornshill Academy pupil took his first steps in rugby with St Mary's RFC in Limerick before joining cousin and fellow Edinburgh player, Grant Gilchrist, at Alloa and Stirling County, lifting the 2009 National under-18 Youth Cup with the Bridgehaugh club.
He went on to represent Scotland at every age-grade from under-17 to under-20, featuring in all five 2010 IRB Junior World Championship matches before his progression to the senior ranks, forcing his way into contention for both pro clubs in his first senior season.
Interim Edinburgh Rugby head coach, Stevie Scott, said: "We're delighted have secured the services of such a promising home-grown talent.
"He's a product of Alloa, Stirling County and the elite development programme and, having honed his skills on the international sevens circuit, has shone on the senior stage.
"His full-time signing means we now have fierce competition in a crucial position, with captain Greig Laidlaw also under pressure from Chris Leck, Alex Black and Sam Hidalgo-Clyne, who's currently on the Macphail scholarship in New Zealand.
"Such strength in depth is key to any squad's success and I'm sure it will become an intriguing part of the club's future campaigns."
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