Andrew
I have attached a binary for the FRDM-KE04Z as reference which has output on the UART (virtual COM UART 0) at 19200Baud. You can check it as comparison and look at registers with the debugger if needed. I don't use PE or KDS but the settings were made as for any other processor part.
To check are:
1. The PLL runs at 40MHz and the bus clock at 20MHz
2. UART0 is derived from the bus clock and so needs a divide value of 65 (0x41), resulting in a Baud rate of 19'230 (16x oversampling clock)
Check the values that you have from the generated settings to see whether there is an error or whether you maybe set a clock up differently to expected.
Regards
Mark
http://www.utasker.com/kinetis.html