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The jacket doesn’t really need to be re-designed as it’s the same for Sand and Mist, only with different colours (Sand has a brown one, Mist’s is a dark blue or black even).
A simple solution to this would be to just recolour the existing model to a light green and put it up for sale in some shop. Making an NPC for it would require more time and effort so I’d suggest they add it to one of the existing shops or just duplicate an NPC (e.g. the Ninken in the Eyewear shop) and make them sell the vest and the utility pouch.
Frankly it's just slightly worse than people buying a house, then going rogue and using it with their allies as a safe zone inside the homeenemy village. We've seen Freezehud do that with the house next to the Kage house, also was it Ryuusuken who owned the house next to the gate and was letting any non-leaf hide in it?
Kages definitely should be given an instant eviction command, as this feature is clearly abused in pvp.