Straight from the transcripts.
I didn't say otherwise. I said you're taking the comment out of context of the episode. You can pull a single line out and make it appear to support your viewpoint but the body of the episode does not support your point of view.
There's no mention of what you claim.There's no evidence of that the Kes are a nation.
These are the specific lines straight from the transcript that only make sense by having Kes refer to the people as a whole government rather than simply the species.
For sake of argument, let's substitute "Egyptian" for Kes
CRUSHER: First of all, the Kes are not half the planet, they're nearly three quarters of it. And the Prytt are not being left out. They themselves simply don't want to have contact with anyone from the outside. not the Federation or anyone else.
The Kes are 3/4 of the planet. Is that population or territory they control? If we say "The Egyptians are 3/4 of the planet" we could be referring to the culture, but it makes more sense to refer to the political nation or body. Who cares what the culture is?
CRUSHER: By all indications, the Kes are a very unified, very progressive people.
Unified in what way? Culturally? Religiously? Politically? Nationalistically? The only ones that matter to Picard in this situation would be political and/or nationalistic. Unified government.
LORIN: We're not fools. We are aware of the Federation attempt to establish a military alliance with the Kes. It will not be tolerated.
What are military alliances established with? The government. They definitely aren't established with individuals or cultures. The United States has a major non-NATO alliance with Egypt. Not the culture, not the people, the nation. Egyptians living in the United States or anywhere in the world for that matter are not allies to the United States (nor are they enemies). The Egyptian government is the ally.
CRUSHER: An escape route. That guard must be working for the Kes.
Now, it's possible the guard could be working for someone of the Kes culture or race or whatever you want Kes to refer to, but in context of the episode the guard is working for a political entity referred to as Kes.
RIKER: That's very kind, Ambassador. But I don't think anyone here holds you or the Kes government responsible for what's happened.
Self explanatory
MAURIC: Well, they should be en route to the Kes border. Our operative provided them with a detailed map and instructions on where to go.
MAURIC: That's a crude, but accurate term. These friends will be waiting for your Captain and Doctor when they reach the village of Ohn Kor near the Kes border. The map we provided your officers will take them to a tavern there.
MAURIC: The danger is minimal. Our operatives control almost the whole village. Once contact has been made with Captain Picard and Doctor Crusher, our friends will escort them across the border into Kes
Kes border. Geopolitical boundary. Kes refers to the government. Especially the last line "into Kes."
LORIN: I am not authorised to talk with a Kes official.
Government official. "I am not authorized to talk with an Egyptian official." The only reason to specify "Egyptian" would be to identify the government involved. If we were talking a business the line would be "Exxon official."
TROOPER: Minister, we have the human female. The male is standing in Kes territory.
Territory. Geopolitical.
It's clear that Kes refers to the government as a whole and the people that make up said government. The same way we use Egyptian to refer to both the people and the government. Beverly's comment in context is referring to a people belonging to a specific government.