Kāinga Ora Chief Executive Andrew McKenzie is stepping down, citing that an overhaul of the organization does not align with what he had agreed to.
Simon Moutter, the chair of the government’s social housing agency, announced that McKenzie will depart at the end of October, following eight years of “excellent” service. Moutter stated that recent and upcoming changes, prompted by an Independent Review published last month, have significantly altered the chief executive role.
Led by former prime minister Sir Bill English, the review revealed that the social housing system is neither financially sustainable nor providing the necessary housing.
“These changes materially reduce the scale and accountabilities of the chief executive role, which is not what Mr. McKenzie had agreed to when he extended his employment contract last year. Consequently, we have mutually agreed on his departure at the end of October,” Moutter explained.
McKenzie’s departure will be treated as a redundancy under his employment agreement, including a six-month salary payout as compensation for notice and redundancy. With an annual remuneration of $731,000 for the 2023/24 year, the payout will be around $365,500.
“I have requested Mr. McKenzie remain until October to complete some crucial ongoing changes and assist with preparing the new plan due to the government in November,” Moutter added.
Moutter commended McKenzie’s leadership, noting his role in establishing Kāinga Ora, guiding it through the COVID-19 pandemic, improving tenant outcomes, spearheading New Zealand’s largest housing construction program, and facilitating the development of land for tens of thousands of new homes over the next decade.
The independent review made seven recommendations, four of which the coalition government has already started implementing. These include refreshing the Kāinga Ora board and issuing simplified directives to the agency. The new board will also develop a robust plan to enhance financial performance.
In May, Housing Minister Chris Bishop acknowledged the panel’s “serious concerns about Kāinga Ora” and the agency’s governance, stating that the organization is underperforming and financially unviable without substantial savings and funding changes. He also pointed out issues in transparency, accountability, and understanding of tenant outcomes within the wider social housing system