Hi,

Your qemu is not the latest version.  The current xenial version is
1:2.5+dfsg-5ubuntu1 .  Does upgrading help at all?

What does 'kvm-ok' show?

What does 'ls -l /dev/kvm' show?

Can you do

kvm -vnc :1 -monitor stdio
QEMU 2.5.0 monitor - type 'help' for more information
(qemu) info kvm
kvm support: enabled


** Changed in: libvirt (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1545687

Title:
  Unable to launch a guest using libvirt on PowerNV Ubuntu Host

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