Kier probably do that because that's what the carncil has contracted them to do. The carncil "transport asset" repair policy will be set in a document somewhere that doesn't reflect active travel being a priority. Here it is:
https://www.westnorthants.gov.uk/highways-policies/highways-plans-and-strategies - they've just rolled the policy of the effectively-bankrupt county council onwards for now, possibly until the end of Kier's contract.
As you can see from page 21 onwards, their inspection frequencies are the minimum allowed by the Institute of Highway Management Code of Practice and the repair response times are not stated, but Appendix 7 implies that they'll be the minimum, although cycleways are not explicitly listed. If anyone told you that active travel is a priority for that council, I'm surprised they managed to keep a straight face because it obviously isn't yet!
Binning off the contractors and taking it back in house will make naff-all difference if that repair policy isn't changed. Changing that repair policy without binning off the contractors will probably allow Kier to extract an extra fee to modify the contract, though.
Politics is allowed when it's about cycling. Ideally, we'll leave party politics out of it as much as possible, but sometimes that's unavoidable.