In order to enable Route to fully functional in Kohana 3.3, we need a .htaccess.

Insert the following in .htaccess(create if not exist) to be under Kohana directory.

I save it under /apps/app1(See my post here for my application structure).

# Turn on URL rewriting
RewriteEngine On

# Protect hidden files from being viewed
<Files .*>
    Order Deny,Allow
    Deny From All
</Files>

# Protect application and system files from being viewed
RewriteRule ^(?:application|modules|system)b.* index.php/$0 [L]

# Allow any files or directories that exist to be displayed directly
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d

# Rewrite all other URLs to index.php/URL
RewriteRule .* index.php/$0 [PT,L]

Reference: Stack OverFlow