Low-level non-app Kobolds and (and probably) Goblins don't drop their packs on death. Why not just disable the script for them? It's not like they're going to be able to respawn and use the goods anyway.
Were you on subdual or full when you killed the PC?
I was playing a non-app kobold and died to a stone lizard. I still had all my things while in the fugue.