diff --git a/devstack-vm-gate.sh b/devstack-vm-gate.sh
index a9c0d4f3..ea39f22c 100755
--- a/devstack-vm-gate.sh
+++ b/devstack-vm-gate.sh
@@ -320,12 +320,21 @@ EOF
         fi
         # keystone deployed with mod wsgi cannot be upgraded or migrated
         # until https://launchpad.net/bugs/1365105 is resolved.
-        case $GRENADE_BASE_BRANCH in
+        case $GRENADE_NEW_BRANCH in
             "stable/icehouse")
                 ;&
             "stable/juno")
                 echo "KEYSTONE_USE_MOD_WSGI=False" >> "$localrc_file"
                 ;;
+            "stable/kilo")
+                # while both juno and kilo can run under wsgi, they
+                # can't run a code only upgrade because the
+                # configuration assumes copying python files around
+                # during config stage. This might be addressed by
+                # keystone team later, hence separate comment and code
+                # block.
+                echo "KEYSTONE_USE_MOD_WSGI=False" >> "$localrc_file"
+                ;;
         esac
     fi