The Reds have bolstered their attacking options from midfield with the arrivals of Jordan Henderson, Charlie Adam and Stewart Downing for a combined total of around £49million.
That will leave Kuyt, who can play on the right or up front, in a fight for a first-team place. Yet the Dutchman has welcomed the extra competition.
"I'm pleased that we have this kind of players in the squad now, I think it's normal for a club like Liverpool that there's competition and the Premier League is a very hard league," he said.
"There are a lot of games to play for and it's impossible to do with 11 people so we need a big strong squad and I think the players who just arrived, they are very welcome for us and I think we needed them."
Scotland international Adam, who cost £9million following an impressive first season in the Premier League with Blackpool, reiterated Kuyt's stance on squad depth.
He said: "I think the competition for places will be good for the club. I thrive on that type of challenge and I'm sure the others lads will as well."
Adam got off the mark in only his second appearance for Liverpool during the club's 6-3 friendly win over Malaysia XI on Saturday, but the 25-year-old would swap his goalscoring habits for a trophy next season.
"The lads have received me really well and helped me ease into the team and I'm happy this has shown on the pitch so far," he added.
"But I came to Liverpool to win titles and I would trade in anything for that, even if it meant not scoring at all next season.
"It's going to be tough, but with our latest signings I'm confident enough to say that we will pose a genuine assault for not only the Premier League, but for the cups as well."