I think you need to have a py:match statement in the index.kid file, something like the following (untested):
<html xmlns="http://www.w3.org/1999/xhtml" xmlns:py="http://purl.org/kid/ns#" py:extends="'LOmaster.kid'"> <head py:match="item.tag=='{http://www.w3.org/1999/xhtml}head' "> <link rel="stylesheet" href="./static/css/styles.css" type="text/css" /> <div py:replace="item[:]"/> </head> ... Your css href may need adjusting, too. It may need to point to "/static/css/styles.css" instead of the relative location.

