I'm partially happy about this bug report now:

s390x/config.common.s390x:CONFIG_KVM=m

Is still a module rather than built-in on s390x. Unlike x86 there is
only one implementation and it should be loaded by default. The trouble
is, that it doesn't get autoloaded (and/or when libvirt-bin service
tries to load it, it gets permission denied).

Please set CONFIG_KVM=y, as without that libvirt does not just work(tm)

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https://bugs.launchpad.net/bugs/1532886

Title:
  s390x kernels are inconsistent for cloud stuff

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