heavier and light ball is dropped. They will hit floor the same time. Wouldn't the heavier ball have more kinetic energy and fall faster?

Yes, the heavier ball has more kinetic energy. It also has more inertia. All that extra kinetic energy is needed to overcome that extra inertia, they exactly match, so that the heavier ball falls at the same speed.

This is one of the marvels of how things work ... inertia mass and gravitational mass are EXACTLY equal, because they are really the same thing.

kinetic energy has nothing to do with speed of falling in gravity.

they fall with the same speed, neglecting air resistance. The heavier one has higher KE, true, but due only to the higher mass. 

They have different kinetic energy because they have different weights or mass.