You're fortunate you still have the handle & screw.
A way to prevent the plastic from cracking is to slightly enlarge the hole, just enough to clear the root of the threads but not so much as to keep the threads' crest from engaging., so the screw's root isn't constantly exerting pressure trying to split the plastic.. Slightly enlarging the hole relieves the stress. A dab of black RTV in the slightly-enlarged hole will keep the screw in place & not stress the hole in the plastic tab as much. However, disturbing the screw on an original switch might further weaken it.
Mama Kaw used that basic switch slide design in many bikes of the era. Many looked very similar but don't interchange because the dimensions differed slightly. Even the very earliest '72 production Z1 switch slides differed from later Z1 and all Z1-A / Z1-B slides.
Mama Kaw offered a repair kit with handle, screw & slide, PN 99990-530. A very brief search indicates NLA, but a deeper search might find one.
If only the slide is needed, #46089-014 turns up a few slides on fleaBay. Prices are steep, but if one wishes to keep correct OEM date coded switchgear, it might fill the bill. We don't know if that one fits the 1979 KZ1000 LTD.
ASPHALT900 - there's a black slide from Germany on the 46089-014 number that might be what you're looking for. Might be a 3D printed replica though.
Good Ridin'
slmjim & Z1BEBE