I'd go a "smidge" higher to get it to the top of the knee. You have plenty of room at the top to wear it higher without it getting to your armpits It will feel odd at first since modern jeans do not reach that high, but it will feel perfect in a kilt.

If you "blouse" out your shirt a bit more around the top of the kilt it will hide the waist band that doesn't quite match the pattern and blend the top and the bottom half of the outfit.

Add in your accessories and your golden!

Congrats on the kilt!