The 23-year-old has appeared for the Toffees just four times in the Premier League this term, playing a total of just 80 minutes.
Kenny spent the 2019/20 season on loan with Schalke in the Bundesliga for whom he made 34 appearances, contributing two goals and three assists.
Having played such a key role in Gelsenkirchen, gaining some experience in one of European football's top leagues, the right back may feel he is in need of more playing time at this stage in his career.
It was previously reported on Sunday by BBC Sport that Celtic had hoped to get a loan deal done before the end of the window, but now the Times' Paul Joyce has revealed the move is set to get the go-ahead.
Kenny has also been linked with a move to Burnley during this window having found himself very much on the periphery of Carlo Ancelotti's plans so far. The Italian coach has preferred to place his trust in the more experienced Seamus Coleman and Mason Holgate.
Celtic have struggled this season and currently find themselves a huge 23 points behind their Old Firm rivals Rangers. Having sold Jeremie Frimpong to Bayer Leverkusen for a reported fee of £9.9m just a few days ago, you can understand why the Hoops are in the market for a right back.
Kenny, a youth product of the Merseyside club, has previously had loan spells at Wigan Athletic and Oxford United as well as the aforementioned time he spent in Germany. It remains to be seen whether he has a future at Everton but for the time being, given his current role in the squad, a move to the Scottish champions would allow him to continue his development further.
Source : 90min