Kendall, a longtime PGA TOUR member, is at 10-under-par 132 for his second career 36-hole lead on the Nationwide Tour -- and first in 13 years.
Three players are tied for second place at 8-under 134. Among them, only Brendan Pappas lost ground.
Pappas, the 36-year-old South African grinder who fired a course-record 60 on Thursday, had a 3-over 74 Friday-- a full 14 strokes worse than his opening round, when he came within one shot of being the fourth Nationwide Tour player to shoot 59.
'Yesterday, I was counting my bad shots on one hand,' said Pappas. 'Today I'm counting the good ones on the same hand.'
Pappas had 11 birdies in a bogey-free first round, only missing his 59 when a long birdie putt on his next-to-last hole ended at the edge of the cup. He came down with a 'bit of a bug' Thursday night, then went out and posted seven bogeys and three birdies Friday.
'My legs just disappeared,' he said. 'I let everyone back into the tournament.'
Kendall carded five birdies in his second straight bogey-free round and grabbed a 36-hole Nationwide Tour lead for the first time since he won the Inland Empire Open in 1994.
'I have no complaints shooting 66 two days in a row,' said Kendall, who claimed both of his Nationwide Tour wins in '94. 'I'm not doing anything unbelievably well. I'm just hitting fairways and greens and taking advantage of the opportunities I have.'
Kendall erased a six-shot deficit, aided by 12-foot birdie putts at Nos. 7 and 16 and an 18-footer at No. 2.
'I played solid today,' he said. 'I made some good putts that kept the round going. But I'm veteran enough to know that thinking about a win after two days is kind of crazy.'
Tom Byrum shot a 67 and Aaron Watkins had a 68 to tie Pappas for second place. Nick Flanagan (66), Hank Kuehne (67) and Brad Adamonis (69) are a shot further back at 7-under 135.
The cut line fell at 1-under 141 with a Nationwide Tour-record 81 players moving on the weekend. Among those missing the cut were two-time PGA TOUR winner Len Mattiace and Pappas' brother, Deane.