I've never seen that KMD format before. After some dissecting I found that the file structure looks like an 8-channel tracker format (similar to MOD or S3M). It has patterns and an order list (up to 128 entries) just like other module formats. Each pattern has a fixed row count of 64. The structure of individual notes seems to be derived from other MOD formats as well, where a note consists of 4 bytes: key number, instrument number, effect type, effect value.
Converting the sequence to MIDI is not impossible but it will take some time to come up with satisfying results because mapping tracker-like note handling to MIDI is a non-trivial task, as with every other MOD to MIDI converter. The underlying concepts of MIDI and MOD differ too much.
EDIT: There seems to be a dedicated drum channel, namely channel 7, where the first byte is the drum sound and the second byte is the volume (byte 3 and 4 are unused(?)). Channel 8 is rarely used and is the only one which is 2 bytes wide. Effect bytes (like portamento, set speed, volume slide, vibrato…) actually follow Pro Tracker specs.
edited 6:25 PM EDT August 2, 2020
KMD player by Newbie2000 at 6:03 PM EST on February 1, 2021
The following page says a mod player for the KMD format was developed, but I can't find a download.
It's worth noting that the composer for this game did upload the soundtrack to youtube a couple years ago here: https://www.youtube.com/playlist?list=PL86BEF_8tyZIfWZImzC_l4JovR7rAGZO0 I doubt he'll willingly provide the midis as well but it might be worth asking him (if he's still active) for anyone interested, his channel: https://www.youtube.com/channel/UCp-KSsgIfeYZe5bh5xYymbA