In a large bowl, combine mashed kiwi, sugar, and lime peel. Let stand for 10 minutes, stirring occasionally. Meanwhile, in a small saucepan, combine the water and lime juice. Stir in the pectin. Bring to boiling over high heat. Boil hard for 1 minute, stirring constantly. Add pectin mixture to the fruit mixture, stirring for about 3 minutes or until sugar dissolves and mixture is not grainy. Cool for 15 minutes.
Ladle jam into half-pint freezer containers, leaving a 1/2-inch headspace. Seal and label. Let stand at room temperature for 24 hours before serving. Store for up to 3 weeks in the refrigerator or for up to 1 year in the freezer.