Having enjoyed a solid stint with Lincoln City between May 2022 and October 2023, Kennedy appeared to be a good fit for the Robins dugout as they targeted promotion from League Two.
Instead, the former midfielder recorded three wins and eight defeats during his opening 16 matches in charge, Swindon currently sitting in 22nd position in the League Two table.
Although only losing the last two matches to Doncaster Rovers and Salford City by 2-1 scorelines, Kennedy was removed from his role on Friday morning.
The Swindon board have wasted no time in confirming an alternative to the 48-year-old with Holloway being handed an opportunity to return to management.
Return after four years
Holloway has not been in the dugout since his role at Grimsby Town came to an end in December 2020, his time at Blundell Park hindered by the coronavirus pandemic.
The 61-year-old was recently linked with a job in Scotland, but he has jumped at the chance to take on a position closer to his Gloucestershire roots.
Speaking to the club's official website, Holloway said: "I'm delighted to be back working in football after a period out of the game as I wanted to get back into it if the right opportunity arose which, with this opportunity, I feel is the perfect fit for me.
"Conversations happened very quickly and both sides were very keen to get the deal done and of course, I was delighted to engage with a club like Swindon Town, a club of whom I know a lot about due to my location and knowledge of the local area.
"I want to be able to bring everyone together to deliver success and positivity on and off the pitch and I'm delighted to be at The Nigel Eady County Ground tomorrow to meet you all for the first time as Swindon Town Manager and I look forward to a successful time working together."
A legend of the EFL
Holloway is taking on his ninth role as a manager, his first coming at Bristol Rovers all the way back in 1996.
During a 989-match managerial career, Holloway has earned promotion from EFL divisions with three different clubs, most notably guiding Blackpool to the Premier League in 2009-10.
He replicated that feat with Crystal Palace during 2012-13, but his primary target right now will be moving Swindon away from the fourth tier relegation zone.
With Swindon playing host to Notts County on Saturday afternoon, Holloway will commence his new job on Monday.