Kennedy has been in charge of Celtic on an interim basis since the club parted ways with Neil Lennon in February.
There were murmurs that the interim manager was keen on taking charge on a permanent basis, but Celtic have been clear about bringing someone in and are expected to agree on a deal with Eddie Howe soon.
It has been claimed that Celtic are prepared to keep Kennedy at the club and are ready to offer him the technical director’s role.
Proven feels the 37-year-old has the tools to succeed in that role, but he admitted that if he wants to manage a side, he will have to leave.
He also believes that the Celtic fans were never going to accept him as their manager so the club are prepared to make him the technical director in order to keep him at Parkhead.
Asked about his feelings on Celtic being prepared to offer Kennedy the technical director role, Proven said on The Go Radio Football Show: “I think he ticks a lot of boxes for that position.
“I did say if he wanted to coach, it wouldn’t be a Celtic and I am talking about first-team coach’s position.
“He is a bright boy, very highly thought of at the club, but as I said earlier Celtic couldn’t sell John Kennedy to the fans as the first-team coach.
“Technical director might be a different ball game.”
Kennedy has denied being lined up to become technical director, but Celtic could still offer him the role.