On May 28, 2008, after enduring a strained right lat muscle, and being diagnosed with bursitis behind the scapular, Kennedy was placed on the DL, expected to miss at least 15 days. He returned to the AAA affiliate of the New York Yankees, struggling in his first few starts before going on a three-game tear. From July 19 to 29, Kennedy pitched 20 innings, allowing 7 hits which yielded 3 runs, while collecting 14 Ks, and walking only 4. On July 24, Kennedy had another no-hitter broken up, after pitching a dominant 6⁄3 innings.