The contract includes awards bonuses.
Kendrick, 26, was eligible for arbitration for the first time. He went 11-10 with a 4.73 ERA in 33 appearances (31 starts) last season. He is 35-24 with a 4.69 ERA in 93 appearances (83 starts) in his career.
Kendrick's salary fell in line with other first-year arbitration-eligible starting pitchers such as Detroit's Armando Galarraga ($2.3 million) and Toronto's Brandon Morrow ($2.3 million).
Kendrick could end up in the bullpen if the Phillies do not trade right-hander Joe Blanton before the season starts. He could take Chad Durbin's role as the team's multiple-inning middle reliever. But if the Phils do trade Blanton, Kendrick would be the favorite to be the fifth starter, although he would get some competition from right-hander Vance Worley.
The Phillies have no more players eligible for arbitration. They agreed to a one-year, $1.175 million deal with Ben Francisco on Saturday.
Todd Zolecki is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.