Kenny gets 2 years, and go from there. As someone else stated, we don't have to worry about him being poached from another club. He is ours, for as long as we want him. 2 years will allow him to rebuild the team, and take from there.
I can't believe people are questioning his ability in Europe. Did you not see the players we had out of those games? Obviously, no Torres since he left. Both his replacements missed some games, Suarez all of them, and Carrol only made one start, his first one. Gerrard out injured too. His European Record (as a manager) isn't a great one, no, but he has limited experience due to the ban at the time in the 80's. He did take Blackburn into the CL, where they didn't fair too well, but it was all new to him. And lets not forget, Steve Clarke has worked with Jose in big CL games, and knows how to win them.
I reckon Kenny and Clarke both get 2 years. And, depending on the situation, I wouldn't be surprised if Steve Clarke was given it full time after. But that is a long way off, yet.