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A Ukrainian-English dictionary gives the following for Kuchma - "hairy fur cap", and "disordered head of hair". So it looks like it means that original bearer was of unkempt appearance. Kuchma would be the usual English language transliteration of the Cyrillic script, but some people use Polish spelling when writing Ukrainian or Byelorussian names in Roman script - thus Kuczma. I checked in a Polish dictionary, but nothing there for Kuczma.
Leonid Kuchma, former President of Ukraine, was a very unpopular fellow. Maybe the "small penis" business was a way of rediculing him.