The reason is a mix-up between the location the sdk manager installs the kernel file to and the location the emulator is looking for it. Path-to-sdk\sdk\system-images\android-16\default\armeabi-v7a\kernel-qemu
After correcting the ANDROID_SDK_ROOT is undefined issue, the emulator still can't find the kernel files even though it can see that the sdk manager installed it to Restart Android Studio for changes to register. Then add the path to sdk as new to system variables section using variable name ANDROID_SDK_ROOT. Properties -> Advanced system settings -> Environment Variables. Right click on 'This PC' icon on desktop, then This is the obvious case of adding the location of sdk to system variables. Open sdk manager and make sure that you have installed ARM EABI v7a System Image In this example I am using armeabi-v7a API 16
