Kine is a hawaiian words that translates to "the one". It is used to express like or show praise towards something or someone. The term has been popularized in the continental United States in reference to potent Cannabis.
Seems reasonable. I don't think the neo-hippies I heard this from 5-15 years ago were thinking anything about Hawaii, though. They thought 'kind bud' or 'the kind' and either didn't think about it, or assumed that meant something that was 'nice' to them.
Sounds good to me. By the time I first heard this in person, people were saying 'kind bud' most definitely, though - so it has a place the vernacular in that form. Slang is a funny thing.