Hill was appointed as John Coleman's replacement earlier this week and Kennedy is one of the few players remaining from when his first spell as Dale boss ended 19 months ago.
Clydesdale Bank Premier League teams Hibernian and Motherwell are the latest clubs to be linked with the 26-year-old and Hill knows he is in demand.
"There is a possibility that he might leave the football club, I've been made aware of that," he said.
"I actually received a phone call from a manager who does want to recruit him last week.
"I gave him a glowing recommendation and if it's to be that Jason leaves, it's to be.
"You can't fault Jason in his loyalty to the football club. Do I want to work with him again - 100 per cent.
"But I think he's been loyal to Rochdale and if another opportunity presented itself that best suited him and his family the I certainly wouldn't stand in his way.
"But we'd have to recruit to replace, there's no question about that."