Kenneth W. Smith, 65, who retired in 1973 as Alexandria's director of traffic and who had been active in civic affairs, died Monday at Alexandria Hospital. He had an aneurysm.

A native of Alexandria and a resident of the city at his death, Mr. Smith joined the city government in 1937 as a fireman. He then became a police officer and in 1944 organized a department of traffic within the police department. After traffic became a separate department, he became its director, remaining in that capacity until retiring.

Mr. Simth had served on the Virginia Highway Safety Commission and the President's Highway Safety Advisory Commision. He was a former president of the International Municipal Signal Association and the Virginia Association of Traffic Engineers.

He was a member of the Alexandria Hospital board and of the Chamber of Commerce. He was president of the Alexandria Chapter of Toastmasters International, Exalted Ruler of the Alexandria Elks Lodge, and a member of the Henry Know Field Lodge and the Andrew Jackson Lodge of the Masons and the Alexandria Scottish Rite.

Mr. Smith also belonged to the Friendship Fire Company in Alexandria, the Police and Firemens Association and the Sons of the Confederate Veterans. He had received numerous community and civic awards.

Survivors include his wife, Virginia, of Alexandria; a son, Stuart, of San Antonio, Tex.; a daughter, Maureen (Renee) Murnane, of Alexandria, and a sister, Catherine Anderson, of Alexandria.

The family suggests that expressions of sympathy be in the form of contributions to the Good Shepherd Lutheran Church in Alexandria, or to the Masonic Home, Richmond, Va.