Keegan will have to approach players in the final year of a contract, therefore free agents in the summer so available now for a cut-price fee.
Speaking to shareholders at the club's AGM, chief executive Alistair Mackintosh explained the City boss will have to be "creative" in his dealings.
"Kevin was very clear that he understood his terms of reference," he's quoted as saying on the City website. "We have a great scouting system and he has been scouring primarily France and Germany for appropriate players.
"We have to be creative. We have already invested significant amounts but it is certainly true that Kevin wants to add to the squad but it is all subject to the appropriate players being available.
"Kevin was tremendously supportive of the backing that the board has given him in his time here, but he continues to look for players to strengthen the team and he highlighted that is because of the nature of the injuries that we have got."