Proposed Canon
Kibo is a level two city. It is one of the three cities of the Kingdom of Faq. One of the two lesser cities, Vinny Doombats describes Kibo and its sister, Otoh, as boring glorified farms. summer-updates-037
Kibo is likely the same name the city had under King Banhammer. When refounding her side, Jillian lacked either the creativity or the desire to create a new name for the capital, keeping it as Faq, so it is likely she kept the name of Kibo as well.
 Real World References
Kibo is the alias of Usenet user James Parry, who is known for posting humorous messages, creating the mock-religion Kibology and for "appearing when summoned" -- that is, scanning all Usenet feeds automatically for references to the alias Kibo, and responding to each such message. This began before modern search engines, and his claim to fame. Kibo's topic of interest are crackpots and other "bozos" and the humor derived from their theories.
Kibo also means "hope" in Japanese. Under Banhammer, Faq had a distinct Japanese influence. It would also bear out in the relationship with Otoh; Hope, but on the other hand...
Alternatively, KIBO may stand for "Knowledge In, Bullshit Out!" although Parry himself has always denied this. This may signify some cynicism. Possibly on the intelligence which the side acts on or on the philosophical rule under King Banhammer.