The former Manchester United assistant manager has warned that it will take the club time before they follow in Chelsea's footsteps and become European champions.
After winning their first league title in 44 years, Roberto Mancini has spoken of his goal to reach the level of Real Madrid and Barcelona.
Kidd, however, opted for a more cautious approach, and reminded all that despite how far City have come, last season was their first ever in the Champions League.
"People have got to remember it was Manchester City’s first time in the Champions League last season and it takes time," he told talkSPORT.
"That's not just being flippant, it is a different way of playing, different circumstances and you grow into it but it does take time."
He continued by expressing his view that the experience from playing in the tournament is far more valuable than anything himself and the other coaching staff can implement on the training ground.
He added: "I think what we can take from it is the desire to improve. If you feel that in different areas you can improve and learn from it that's the key.
"All credit to Chelsea who i believe haven't got the credit they deserve. They went and had a game plan against Barcelona which was fantastic, and to go to Bayern into their area and get a result was incredible."
Kidd also paid tribute to what he feels is a "fantastic" squad, whilst also rubbishing claims that City lacked the team spirit to kick on and achieve bigger things.
He continued: "We've got a super group of players, and it wasn't a month ago that people were questioning the spirit and camaraderie of the group, saying we wouldn't do this at our club and we wouldn't allow that.
"I don't know why people are so judgemental, we don't know what's going on at other clubs so we don't pass judgement on any other club.
"You can only deal with what's right in house, and i think you can see that, you don't pull eight points back in six games if there isn't some sort of togetherness.
"The demands these players made on each other both in training and on the field was incredible, as was the support they gave each other, it shows they have a great spirit."