Small Engine Troubleshooting Problems? Ask a Mechanic Now.
Welcome to JUST ANSWER small engines, let me try to help you !! I don't know it all, but maybe together we can get you a satisfactory answer!
You ran a compression test, but did you run a cylinder balance test? Loosen the spark plug wires, and with the engine idling, remove one wire at a time. engine should continue to run. If engine dies when one wire is removed, the opposite cylinder is not firing. On Kawasaki, it can have a bad coil. Bad coil, miss firing cylinder, will smoke and run rough. I doubt it is head gaset!