No, KE refers to electronic control = EHA. It has nothing in particular to do with O2 sensors/lambda control. Once doing electronic control though, lambda becomes just one more function on top of cold start/warm-up enrichment, acceleration enrichment, and decel cut-off.

The 230E or 230TE in the US probably had the catalyst/O2 sensor added when brought into importing compliance.

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Steve Brotherton
Continental Imports
Gainesville FL
Bosch Master, ASE Master, L1
33 years MB technician