Dynamic loading of Archive content based on custom taxonomy term name

You should only need one template. What you’re describing is how things should work, if your templates are written correctly.

In your case you only need taxonomy-kernal_category.php. This template will be used for all terms automatically, and the correct posts will be displayed as long as you use the standard loop:

<?php 
if ( have_posts() ) : 
    while ( have_posts() ) : the_post(); 
        // Display post content
    endwhile; 
endif; 
?>

So there should be no manual querying of posts with WP_Query or anything like that.

To output the name of the current term dynamically, you can use the_archive_title(), and the description with the_archive_description().

the_archive_title() often prefixes the title with the taxonomy name, like “Kernal Category: News”, so if you don’t want that yuo can use single_term_title();.