I seem to be gaining kills fine but they arent decaying, It's been 20+ hours of ingame time and not one has decayed.

maybe it decayed but you gained it back to fast to see the change? or it could be broken who knows.

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GMBob wrote: A non-bob gm who shall remain nameless did it!

Im not sure, but i think i remember Bob mentioning somewhere about new kill system. And after some kills u would become permanent red.

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"Blessed be the noobs, for they shall inherit Obsidian" - Seer Thassius

try killing someone. You might still be running on the old kill decay timer.
When you kill them it should say how many hours you have till your next decay, which shouldn't be too long at 20 kills.