One feature of Csound that always seems to catch people is the reason that there are both 'i' and 'k' variables. You have to remember that an instrument is driven in two passes: an 'init' pass that only happens once in an invocation -- at the very beginning, before anything else. After that 'performance' passes occur at k-rate while the instrument is active. An i-variable's value is determined in the init pass, and never changes further during the performance. So even though you're using the k-to-i conversion, the only value seen is the initial one -- '0' in this case. midic7 opcodes only execute during performance passes, so the i-variable never sees the changes.

Fortunately there seems to be a very simple fix: replace 'oscil' with 'oscilikt', and use your kfn directly. (I've never actually used this, so I'm trusting the manual! It doesn't say what happens if the table-number references a non-existent table, so be careful...)