Index: cloud-init/cloudinit/SshUtil.py
===================================================================
--- cloud-init.orig/cloudinit/SshUtil.py
+++ cloud-init/cloudinit/SshUtil.py
@@ -4,6 +4,12 @@ import os
 import os.path
 import cloudinit.util as util
 
+try:
+    import selinux
+    HAVE_LIBSELINUX = True
+except ImportError:
+    HAVE_LIBSELINUX = False
+
 class AuthKeyEntry():
     # lines are options, keytype, base64-encoded key, comment
     # man page says the following which I did not understand:
@@ -147,6 +153,8 @@ def setup_user_keys(keys, user, key_pref
     util.write_file(authorized_keys, content, 0600)
 
     os.chown(authorized_keys, pwent.pw_uid, pwent.pw_gid)
+    if HAVE_LIBSELINUX and selinux.is_selinux_enabled():
+        selinux.restorecon(ssh_dir, recursive=True)
 
     os.umask(saved_umask)