Kendrick will be paid $5.5 million in 2015, according to multiple reports.
A back-of-the-rotation starter, Kendrick reached 30-plus starts and 180-plus innings in each of the past two seasons with the Philadelphia Phillies. The 30-year-old right-hander, however, had a 4.65 ERA and allowed 43 home runs over that span.
Kendrick, who has pitched only for the Phillies since entering the majors in 2007, was 10-13 with a 4.61 ERA last season. He has a 74-68 career record.
The Rockies are in need of starting pitching, with Jorge De La Rosa, Jhoulys Chacin, Tyler Matzek and Jordan Lyles slated for the rotation. David Hale and Gus Schlosser, who were acquired in a trade with Atlanta last week, also could compete for a roster spot.
Kendrick, who allowed 25 home runs last season, has a career 5.26 ERA at Coors Field.
The Rockies designated left-hander Yohan Flande for assignment to make room for Kendrick on their 40-man roster.