The original release did not have prefix variable and the installation was done in /usr. Hence, we should
1. Change these lines in 
a) Makefile
Line 2  :	CFLAGS=-flto -fuse-linker-plugin -mtune=generic -Os -pipe $(shell pkg-config --cflags vte-2.91)
Line 15 :	mkdir $(TARGET)/usr/local/bin || true
Line 16 :	mkdir $(TARGET)/usr/local/share/applications || true
Line 18 :	install build/$(NAME) $(TARGET)/usr/local/bin/$(NAME)
Line 19 :	install build/$(NAME).desktop $(TARGET)/usr/local/share/applications/$(NAME).desktop
b) .config/kermit.desktop
Line 16 :	 Exec=/usr/local/bin/kermit

For replacing lines efficiently, use nano text editor.

After editing the Makefile and .desktop file,
Assuming the extracted folder of the modified sources is /home/tc/Downloads/kermit , do
cd /home/tc/Downloads/kermit
make
touch mymarker
sudo make install
sudo find / -not -type 'd' -cnewer mymarker | grep -v "\/proc\/" | grep -v "^\/sys\/" | tee files
editor files [edit unneeded files]
sudo tar -T files --numeric-owner -zcvf kermit.tce
mkdir /tmp/kermit
tar xf kermit.tce -C /tmp/kermit
sudo mksquashfs /tmp/kermit kermit.tcz
mv kermit.tcz /home/tc