This isn't an issue in Kubuntu Intrepid (8.10) since Kicker is no more.
(replaced by Plasma)
Thanks for the bug report all the same.
I should note that Plasma's analog clock does support timezones, but it
doesn't label which timezone it's using yet.
** Changed in: kdebase (Ubuntu)
Status: New => Fix Released
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kde panel clock displays wrong timezones
https://bugs.launchpad.net/bugs/228111
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