Thanks for posting this log. It looks like you’ve done everything right, so there might be a bug with our installer trying to run pip.exe, which we’ll have to look into.
If you are comfortable with using the command line, there is a way you can install and run Kolibri using the pip command line tool (which we have confirmed has been installed). Instructions here
It might go something like this on the command line:
> C:/Python34/Scripts/pip.exe install kolibri
If that goes well, you should be able to start it this way
> kolibri.exe start