How do I get kate to restore last used session?

I have two computers and both have exactly the same behavior. I have the option "load last used session" selected, but every time, Kate starts a new session. What could be causing this?

Here are the permissions of ~/.kde/share/apps

mike@mike-laptop:~/.kde/share/apps$ ls -l
<..>
drwx------ 4 mike mike 4096 2011-08-19 10:58 kate
<..>

mike@mike-laptop:~/.kde/share/apps$ ls -l kate
-rw------- 1 mike mike 2927 2011-08-19 10:58 metainfos
drwx------ 5 mike mike 4096 2011-03-18 09:49 plugins
drwxr-xr-x 2 mike mike 4096 2011-03-18 09:49 sessions

Also starting kate from the command line produces no output at all.

Open ~/.kde/share/config/katerc and verify if these are in there:

[General] 
Last Session=mysession.katesession 
Restore Window Configuration=true 
Session Exit=save

There has been a long outstanding bug where sometimes some of the settings are not properly saved.