This was affecting me too. I went to Settings->Configure Kate->Editor Component->Editing->Indentation->Indentation Actions and changed "Tab Key action" to "Always advance to the next tab position".
Kate Version 3.2.2 Using KDE 4.2.2 On Kubuntu 9.04
This was affecting me too. I went to Settings->Configure Kate->Editor Component- >Editing- >Indentation- >Indentation Actions and changed "Tab Key action" to "Always advance to the next tab position".
Kate Version 3.2.2
Using KDE 4.2.2
On Kubuntu 9.04