I had the same problem running kodi 17.0-2 on Arch Linux (4.4.49-1-ARCH) on a raspberry pi 2.
I discovered that the kernel was misidentifying the keyboard part of the remote as a joystick.
Using information from https://github.com/denilsonsa/udev-joystick-blacklist I created the udev rule /etc/udev/rules.d/51-not-a-joystick.rules
SUBSYSTEM=="input", ATTRS{idVendor}=="1d57", ATTRS{idProduct}=="ad03", ENV{ID_INPUT_JOYSTICK}=="?*", ENV{ID_INPUT_JOYSTICK}=""
SUBSYSTEM=="input", ATTRS{idVendor}=="1d57", ATTRS{idProduct}=="ad03", KERNEL=="js[0-9]*", RUN+="/bin/rm %E{DEVNAME}", ENV{ID_INPUT_JOYSTICK}=""
I think kodi may be only looking for specific types of input devices, that is, not joysticks.