I just reeived an email directly from KQ refund department and it did state that the ticket has been cancelled (actually suspended when I checked the status) - the person signing off this was the same as a few posts back and the content of the mail was very similar as previously posted. The whole booking is still confirmed.
I am not going to do anything for now and leave it, will also most probably write to the Kenya Consumer dept to complain as I doubt that there is any use writing to Kenya Airways.

Cheers!