The kobold glances toward Kiri when she begins speaking, and takes the one step necessary to bring her into mind-reading range, but doesn't otherwise take her eyes off the woman with the kids.

It is completely unsurprising to the kobold that people think there might be violence here: she is entirely willing to do violence, if that's what it will take stop that from happening again.

No, what she's surprised at is that Kiri seems to be okay with someone hitting a kid.