This is not only a limitation on Kaveri, but on any HSA platform using the HSA runtime. Currently the kernel compiler doesn't support the alloca instruction, and without the ability to allocate stack variables on the fly, kernels cannot be recursive. The lack of alloca support is clearly documented in the HSA-Runtime-AMD wiki's section on unimplemented functionality (even if recursion isn't).
The alloca instruction will be supported in an upcoming release (possibly September of 2015). Recursion should be supported at that time.