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"Negotiations didn't take very long, about five minutes," Kenny told the Irish News.
"The club made it clear they wanted me to stay and I was happy to stay," he added.
Derry have re-signed Clive Delaney and David Forde, while Sean Hargan has extended his deal for two more seasons.
Ken Oman has arrived from Bohemians, while Kenny is keen to add Finn Harps striker Kevin McHugh to his ranks.