When I first moved to Toronto 5-6 years ago, my first rental was in Kensington. I did all my grocery shopping in the produce stalls, the organic store, the bread & cheese stores and even the small Loblaws owned store. I loved living in Kensington for all my shopping convenience. I often miss shopping there after having moved several times.
I haven't been to many of the restaurants there but one of the best vegetarian/vegan restos (Urban Urbavore - now in Eaton's center) is there. I know people go there a lot for good Mexican food as well. Personally, I used to take out of towners, friends, guest to the indoor art market for a fun thing to do. I haven't been in a while but it's a great place to find a fun gift for someone.
I was also around for many Pedestrian Sundays and in the summer they often had Capoeira demonstrations and bands to keep you entertained for hours.
The local coffee shop and breakfast spot were always full.
Kensington is one of the hot spots all tourist and Torontonians should get to know intimately, as much as possible, it won't disappoint!.