It appears this is a reasonably common occurance. My '98 300 kickstarter had exactly the same problem. The lever snapped off at the pivot point. I suspect that the problem lies not in the kickstarter, but in the retaining bolt. I have had problems (as have friends with KTM's) with this bolt working loose.The kickstarter then slides on the spline coming down too far and hitting on the footpeg.
My suggestion is to use Loctite and reguarly check the retaining bolt.Happy riding.