This kind of behaviour suggests to me - that perhaps this kitten was taken from his mother abit to early - and was not taught properly on how things are done and has simply made up his own rules. If this is for sure the reason - you may want to consider separating him (to his own room-with all his own personal food/water bowls, beds, litter box, toys etc.) from the other cats and introduce a new routine with him which will require abit of one-on-one time spent to re-introduce certain patterns of behaviours. You mentioned, you tried a crate with just dry and water which resulted with him peeing inside. That may have been due to stress of being in the crate.
However, perhaps the dry food resembles the litter? If the kitten does not eat the dry food it has somehow associated it with the litter granules/pellets. Also, since he is sharing with other cats - it may be a dominance thing. Not only is he marking his territory but he is also sending the others a message that he is not one to be messed with. Or he is stressed by their presence? Has he been neutered? Sometimes once they have been neutered these narcotic habits will diminish over time.
So this could take some time in determining the actual cause, or if it is a combination.
Consider a trip to your local veterinarian for a more in-depth look into this situation, as there may also be an unlying medical condition involved.