Congratulating the two for winning the Nobel Peace Prize, Kerry said Malala has become a global leader, inspiring millions of people through her advocacy for girl's education; while Kailash and his organisation, Bachpan Bachao Andolan, have worked to eradicate modern slavery in India.
"Their efforts to promote the rights of children have benefited millions of young people around the world," Kerry said in a statement.
Kailash has been a longtime partner of the State Department, which named him a Trafficking in Persons Report Hero in 2007, he added.
"Malala has become a global leader, inspiring millions of people through her advocacy for girl's education. The brutal attack against Malala by the Taliban two years ago this month could not silence her," Kerry said.
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Kerry said the award is also a reminder that there are still millions of children around the world being exploited and barred from school every day.
"That's why Kailash and Malala's work is so important. While they come from different countries and religious backgrounds, they share the same passion for protecting the most vulnerable among us," he said, adding that he is inspired by them.