The South African teed off on Friday at three-under-par following an opening round 67.
However three bogeys, offset by a solitary birdie, on the front nine of his second round saw the 27-year-old drop to one-under-par for the tournament.
Kruger then came to life on the back nine posting four birdies in a row between 11 and 14, before adding further birdies at 16 and 17 to post the clubhouse lead at seven-under-par.
"I played well, I probably swung it the best I've swung it in a long time. "I'm excited and I'm playing better for a change. It's fun to play relaxed golf for a change and see what unfolds."
Kruger wore a black ribbon on his golf shirt as a tribute to the former South African President Nelson Mandela, who died on Thursday evening.
"Our country lost a real-life hero," he said.
Kruger leads former Walker Cup player Stuart Manley by a single shot, after the Welshman recorded his second straight round of 67.
Manley is currently enjoying a purple patch after graduating from the European Tour Qualifying School in November. A week later he scooped a $197,500 cheque for his eighth place finish at the World Cup of Golf in Australia.
Overnight leader David Higgins dropped down the leaderboard after a four-over-par round of 74 to drop the Irishman to two-under for the tournament.
© Copyright Press Association
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