Strange, I know this version, it is quite old but much smaller than the newer one. I used it on my Bookeen device before. Don't know the differences between the versions.
I guess due to the smaller RAM size from the Kobo Touch it is working better on that device. My version comes from the nightly builds (forgot to mention it):
http://download.kiwix.org/nightly/
kiwix-tools_armhf*- I took the version 2017.10.13
They didn't compile the arm version for some years but started compiling it again this year.
But you did configure the loopback interface via:
ifconfig lo 127.0.0.1 up
or not?
Edit: I'm using the version I provided on my Touch HD reading ebooks only with Coolreader but starting into Nickel for some weeks now (FW.3.19.5761). I did not experience any negative issues coming from runnig kiwix-serve in the background.