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From urban dictionary...

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.

"Kine" means Excellent in Hawaiian, Which would make more sense than saying Kind/Friendly bud.

Highest rated urban dictionary definitions for "Kind Bud" also state and correct this common mistake.

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.

I don't know much about pot, but the phrase "Da Kine" is a term of high praise in Hawaiian Pidgin, possibly originating from native Hawaiian.