The independent TD said the Taoiseach had showcased the Republic as "a nation of pimps, prostituting ourselves in return for a pat on the head."
Ms Daly, a TD for Dublin North, described President Obama as a "war criminal" and "hypocrite of the century" for preaching peace to Northern Irish teenagers while he increased US drone attacks by 200 per cent.
Continuing her astonishing attack, Ms Daly said there was speculation "whether (the Taoiseach) was going to deck the Cabinet out in leprechaun hats decorated with a bit of stars and stripes to really mark abject humiliation."
She also claimed Mr Kenny was "pimping" Ireland as a tax haven.
The TD said there had been "almost unprecedented slobbering" over the visit of US First Lady Michelle Obama and her daughters Malia and Sasha to the Republic while President Obama attended the G8 summit in Fermanagh.
Ms Daly also criticised U2 star Bono's tax arrangements, saying: "We’ve had separate and special news bulletins by the State broadcaster to tell us what Michelle Obama and her daughters had for lunch in Dublin but very little questioning of the fact that she was having lunch with Mr Tax Exile himself."
In response, Mr Kenny said Ms Daly's comments were a "disgrace" and "beneath" her since Mr Obama was supporting the peace process in Northern Ireland.
The Taoiseach said President Obama "wants to support that process visibly, personally and with assistance from the US where 35 million Irish-Americans want this peace process to continue."
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