Food Safety – Should Kiwifruit Be Peeled?

It is perfectly safe to eat the peel in and of itself. You will need to make sure that you wash it properly, as it may be dirty. But beyond that, it's simply a matter of taste. A lot of people don't like the flavor / texture of the peel and so remove it.

From a site devoted to kiwis:

Kiwi fruit skin is definitely edible, and there's a lot of different theories about eating it.

Kiwi fruit skin contains high levels of flavonoids, insoluble fiber and antioxidants: these substances all have a beneficial effect on your body's metabolic functions (flavonoids and antioxidants) and on your digestive system and cardiovascular apparatus (insoluble fiber).

Common sense, however, should be practiced in this respect: while raw kiwi fruit skin contains these beneficial substances, it also tends to contain more than 99,95% of of the pesticides in that particular fruit (if they have been used), which largely outweighs the benefits from flavonoids and antioxidants.