Kāinga Ora's Chief Executive Andrew McKenzie will be stepping down at the end of October, with a $365,000 payout.

A review has found the state housing provider needs significant savings to be financially viable.

Kainga Ora Chair Simon Moutter says it's the right time.

"Given the extent of change going on in this organisation with the changes through the Government's budget allocations to KO and the findings of the independent review...it was only right."

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