Kenny Shiels guide Killie to the League Cup semi-finals, beating rivals Ayr United. Despite the win, Shiels criticised rival team tactics, believing the club should have done more. On 18 February 2012, Kilmarnock beat Rangers 1–0, with Shiels' son Dean scoring in the 12th minute, making him the first Kilmarnock manager to beat Rangers twice in one season. After the match, Shiels said a win over Rangers was dedicated to the club's supporters and praised his son, who scored the only goal in the match, for his performance as "outstanding". On 18 March 2012, Shiels' Kilmarnock side travelled to Hampden Park for
Kenny Shiels the club, having a rejected a move from an English club in the past week. A week later, on 22 May 2012, Shiels signed a two-year contract extension. At the start of the 2012–13 season, Shiels was given two-match touchline ban by the SFA in June, having served one suspension on the last game of the season and miss one match at the opening game of the season. His touchline ban was given over commenting made about a referee's decisions made in a match between Celtic and St Johnstone. Following a controversial penalty in a 2-0 defeat against Hibernian on