The right-hander, who underwent surgery on May 12 to remove an aneurysm from beneath his right biceps, made 50 throws at 90 feet to minor league coach Dan Borrell on Friday.
"It feels really good," Kennedy said. "Doesn't feel like anything ever happened."
The 24-year-old Kennedy was pitching for Triple-A Scranton/Wilkes-Barre this season when he experienced numbness in his pitching hand.
"I don't have anything going on with my hand at all," Kennedy said.
Kennedy understands he might not be ready to pitch in a game before the minor league season ends in early September. His return might have to wait until the Puerto Rico winter league, where he plans to pitch for the second straight year.
"It's all depending on how the throwing program goes," Kennedy said. "I'd love to be right on that schedule [to pitch in minor league games] and I'm going to try my best to stay on schedule, but if anything happens, it's not really worth having another problem."
Kennedy's surgery was performed by Dr. George Todd, who operated on former Yankees pitcher and current team broadcaster David Cone's aneurysm in 1996. Cone's post-surgery plan is being followed by Kennedy.
"I talked with Cone and he said he still had numbness even after," Kennedy said. "I'm thankful I haven't had any numbness since the surgery, actually."
Kennedy, 0-4 with a 8.17 ERA for the Yankees last year, has been working out at the team's minor league complex in Tampa the past three weeks.
"Get some innings, and get ready for spring training," Kennedy said.