Comment 3 for bug 434199

locale doesn't have textdomain either:

Python 2.6.2 (r262:71600, Sep 21 2009, 10:45:01)
[GCC 4.2.1 20070719 [FreeBSD]] on freebsd7
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>>> import locale
>>> locale.textdomain
Traceback (most recent call last):
  File "<stdin>", line 1, in <module>
AttributeError: 'module' object has no attribute 'textdomain'
>>>

Your change to setup_translation did allow it run. Grepping for textdomain in the python install I see that kiwi handles these calls by wrapping them in "if hasattr(locale, ..."