An algorithm for kinematic motion planning of redundant planar robots, having revolute joints, in an unknown dynamic environment is presented. Distance ranging sensors, mounted on the body of each manipulator link, are simulated here to estimate the proximity of an obstacle. The sensory data is analyzed through a fuzzy controller which estimates whether a collision is imminent, and if so, employs a geometric approach to compute the joint movements necessary to avoid the collision. Obstacles can sometimes move uncompromisingly in the environment attempting a deliberate collision. Strategies to deal with such cases are presented and recovery procedures to circumvent the obstacle from tight corners are suggested. Cases of link overlap have been avoided by considering each link as a body which is sensed as an obstacle by every other link of the same manipulator. Suitable examples are presented to demonstrate the algorithm.