Manager Neil Lennon needs some quality additions to give his squad a new lease of life, with 23 points separating his side from runaway Scottish Premiership leaders Rangers.
Kenny could make his debut against Kilmarnock on Tuesday, and the England youth international will be eager to prove himself at Parkhead in the coming months.
Having sold a wantaway Jeremie Frimpong to Bayer Leverkusen last week, Celtic needed to bring in a replacement and Kenny could be a fine addition.
The 23-year-old struggled to break into manager Carlo Ancelotti’s plans at Goodison Park, featuring in just four Premier League games this term, with just one coming from the start.
Everton have been linked with a couple of right-backs in the transfer market, while centre-back duo Mason Holgate and Ben Godfrey have been deployed in the position on a couple of occasions this term.
He is clearly not in Ancelotti’s plans having spent last term on loan at Bundesliga side Schalke, and a fine loan spell at Celtic could see him attract more suitors.
Burnley were also keen on Kenny, but they could not agree a deal with the Toffees.
The right-back scored twice and assisted three times in 31 league games in the German top-flight last term, and he could play a huge role as Celtic look to bounce back in the second half of the campaign.