'ps' command in your compute node.

ps axfu | grep -e qemu -e kvm

If show like this 'qemu-system-x86_64 -machine accel=kvm:tcg' ,KVM work well.

Please refer this. https://bugs.launchpad.net/nova/+bug/...

Also in Fuel-Kilo nova is managed my 2 files instead of one. One is nova.conf and the other is called nova-compute.conf. They are in the same place and they must both be changed. Type ps -ax |grep nova on the compute host in you will see in the config-files option where is the second file. Could be the issue if you have Fuel

I have the same issue, i am using queens, /etc/nova/nova.conf shows: [libvirt] vif_driver=nova.virt.libvirt.vif.LibvirtGenericVIFDriver virt_type=kvm

but when i run nova hypervisor-show

i get hypervisor_type | QEMU

After much experimentation and reading of documentation, I think that the answer to the problem is that when you are using nested virtualisation, your hypervisor type always appears as QEMU. However, you can confirm that you are using nested KVM on your compute nodes, by looking at the process line (ps -ef|grep qemu) of your created servers. It will look something like this:

/usr/libexec/qemu-kvm -name guest=instance-00000032,debug-threads=on -S -object secret,id=masterKey0,format=raw,file=/var/lib/libvirt/qemu/domain-1-instance-00000032/master-key.aes -machine pc-i440fx-rhel7.5.0,accel=kvm

(note the bold text) which shows that KVM acceleration is in use. Also, you'll be able to tell because your servers will be approximately a million times faster... :)