The sides head into 2011 level on 38 points with United top on goal difference, and with two games in hand.
Kidd, a former assistant to United boss Sir Alex Ferguson, said: "It's theirs to lose, it's in their hands. You can't get away from that.
"They have been round the block and know how to win league titles."
City are second in the table, two points clear of third-placed Arsenal, with Chelsea a further two points off the pace in fourth.
Despite a recent run of poor form, which produced only one win in seven league games, Kidd said he regarded Chelsea as the other main contenders for the ultimate prize.
"It's the same with Chelsea," Kidd commented.
"Not so much so with Arsenal as it's been five years since they were in the mix - but they [Chelsea] know how to go on and win it."
Manchester United midfielder Darren Fletcher dismissed Kidd's claims.
"It is just a bit of kidology," Scotland captain Fletcher responded.
"It is still early stages and lot of teams will feel they are capable of winning the league. We are one of them.
"We are in a good position. We are top of the league with games in hand. But it is easy counting the points. You have to win your matches and your games in hand.
"This is the important part of the season when you really need to kick on. After January, when all the big games come on the title run-in, that is when it is important to be playing well and winning games."
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