diff --git a/gnu/system.scm b/gnu/system.scm
index 661bf4cc52..812d7c5d56 100644
--- a/gnu/system.scm
+++ b/gnu/system.scm
@@ -232,7 +232,6 @@ (define %default-issue
 This is the GNU system.  Welcome.\n")
 
 (define* (etc-directory #:key
-                        kernel
                         (locale "C") (timezone "Europe/Paris")
                         (issue "Hello!\n")
                         (skeletons '())
@@ -260,9 +259,7 @@ (define* (etc-directory #:key
 export TZDIR=\"" tzdata "/share/zoneinfo\"
 
 # Tell 'modprobe' & co. where to look for modules.
-# XXX: The downside of doing it here is that when switching to a new config
-# without rebooting, this variable possibly becomes invalid.
-export LINUX_MODULE_DIRECTORY=" kernel "/lib/modules
+export LINUX_MODULE_DIRECTORY=/run/booted-system/kernel/lib/modules
 
 export PATH=$HOME/.guix-profile/bin:/run/current-system/profile/bin
 export PATH=/run/setuid-programs:/run/current-system/profile/sbin:$PATH
@@ -326,8 +323,7 @@ (define (operating-system-etc-directory os)
                               (append-map service-pam-services services))))
        (profile-drv (operating-system-profile os))
        (skeletons   (operating-system-skeletons os)))
-   (etc-directory #:kernel (operating-system-kernel os)
-                  #:pam-services pam-services
+   (etc-directory #:pam-services pam-services
                   #:skeletons skeletons
                   #:issue (operating-system-issue os)
                   #:locale (operating-system-locale os)