The equation you present is correct for a satellite in an elliptical orbit, while the answer from past exams is certainly comparing the KE of circular orbits with different radius:
In the case of an elliptical orbit, the radius is varying at each instant (as the central body is in the focus of the ellipse and the trajectory is an ellipse) but the total mechanical energy is constant and given by
$E = KE + GPE = \frac{1}{2}mv^2-\frac{GMm}{r} = constant$.
Note that the potential energy is negative but still increases with altitude. So, comparing KE in the same orbit at different instants, when the satellite is at different positions (and So different distances $r_1$ and $r_2$ from the focus) just results in the expression you presented; at initial distance $r_1$ and final distance $r_2$, conservation of energy results in:
$E=constant = \frac{1}{2}mv_1^2-\frac{GMm}{r_1}=KE_1 + GPE_1 = KE_2+GPE_2=\frac{1}{2}mv_2^2-\frac{GMm}{r_2}$
and so
$\Delta KE=KE_2-KE_1=-\Delta GPE=GPE_1-GPE_2=GMm(\frac{1}{r_1}-\frac{1}{r_2})$.
The situation is different when comparing different circular orbits. For each circular orbit KE and GPE do not vary. In the case of circular orbits, the inertial force is just centripetal, and equating it to the gravitational force results that the speed is simply given by
$v=\sqrt{\frac{GM}{r}}$ (circular orbits only).
So, for two orbits with different radius $r_1$ and $r_2$ (and different total energies)we have:
$KE_1=\frac{1}{2}mv_1^2=\frac{1}{2}m(\sqrt{\frac{GM}{r_1}})^2$ and $KE_2=\frac{1}{2}mv_2^2=\frac{1}{2}m(\sqrt{\frac{GM}{r_2}})^2$
and finally
$\Delta KE=KE_2-KE_1=\frac{1}{2}GMm(\frac{1}{r_2}-\frac{1}{r_1})$
which is the "half" answer you mentioned. Note also the different sign of the answer compared to the case of a single elliptic orbit.