The 19-year-old Toffee will travel with train with his new team-mates for the first time on Thursday after linking up with Karl Robinson’s side for the remainder of the 2013/14 campaign.
Kennedy, who played against the Dons while on loan at Tranmere Rovers earlier in the season, goes straight into the squad for Saturday’s clash with Wolverhampton Wanderers.
Karl Robinson told mkdons.com: “He’s someone we’ve watched throughout the season in the U21s at Everton and he’ll bring pace, trickery and excitement.
“He also provides us with another option at the top end of the pitch, which is somewhere we are looking to improve.
“He did very well for Tranmere earlier this season and he is highly thought of by Roberto Martinez and the coaches at Everton. I’d like to thank Roberto and Everton for allowing us to get this deal done and I look forward to working with him.”
Born in Irvine, Kennedy joined Kilmarnock at under-19s level before being promoted to the first team in December 2010 for their match against Inverness Caledonian Thistle.
He appeared a further seven appearances on the bench that season before making his senior debut at the age of 17 in a 1-1 draw with Hibernian at Easter Road. Kennedy started his first professional game two months later at home to St. Mirren.
Kennedy, who made 14 appearances for the Rugby Park outfit, joined Premier League side Everton for a nominal fee in August 2012 and was assigned a squad number by David Moyes.
Yet to make a senior appearance at Goodison Park, Kennedy spent two months on loan at Tranmere earlier this year and made eight appearances, including a 72-minute run-out against the Dons in February.
Kennedy, who has also represented Scotland at every youth age group from under-15s through to under-21s, will add a new dimension to Robinson’s attack in the final two months of the season.
The deal includes eligibility to feature in the play-offs should the Club finish the regular season in the top six.