People say that you shouldn't fold AA or KK ever because it's a good guideline for beginners to follow, because to be honest, you should fold them very seldom so you will make the correct play most often by always playing them.
That said, for you to fold KK you need information on your opponent. And that the whole table has been playing cautiosly is not good enough of a read for you to fold KK. You need a specific read on this opponent for you to be able to lay down KK.
I had one of those spots in a cash game recently. I opened somewhere in EP, a tight guy 3bet me somewhere in MP, it folds to me and I 4bet. Not a very good play by me, because when I look over at his stats, he has a 1% 3bet, which means he pretty much only 3bets with AA and KK.
And then he min 5bets. So I'm fairly surprised that I managed to lay it down to the 5bet so quickly. Because I know I was beat, as simple as that. Of course I was mad that I didn't just flat the 3bet, but that's not something that you can let influence your future decision making. Now someone might say that sample size was an issue. I don't remember how many hands I had on him, but well enough to know that a top 2% of hands is the loosest he can be in that situation. So what if he had AK or QQ? He probably didn't. I've gone all-in with KK against many players that had even a 3% or 4% 3bet stat, and they have almost always had AA. All the nits at the micros are not comfortable enough to go all-in with QQ or AK, because I have never seen a nit go all-in pre with anything but AA or KK.
So when I see this nit min 5bet me (which is also a sign that he has AA that doesn't want to scare me away) it hurts, but if he literally has AA a 100% of the time, instead of saying "well, I have KK so I can't fold", try to logically think if he can do it with anything but AA. If he can't, just fold KK (a HUD will help a lot for this, it's very hard to make such a precise read without one).
As for AA, it could be folded in satellites if you know you are already guaranteed a seat if you don't play anymore hands. And also if you see 5+ people going all-in in a hand, your chances to win with AA will go down by a lot. Otherwise you should always get AA all-in preflop if you can, since it's by far the best preflop hand you can get. But be ready to fold if the flop is bad.
To summarize: Never fold AA preflop in tournaments. Fold KK against super nitty opponents that YOU KNOW FOR A FACT only 3bets, 4bets or 5bets with AA or KK.
In the situation you described though, you can't be sure that he wouldn't do it with other hands too, so the money were going in anyway. Well played by you.