I have the same exact issue!.
I created a keytab and kinited with the user running the livy server. I'm able to send http requests and run example jobs, like the PI approximation job.
I've also modified several hue.ini values via the safety valve, but nothing seems to work. I see regular notebooks that only displays HIVE, PIG, TEXT and MARKDOWN as languague options!.
What might be wrong??
Old post I know, but maybe someone will find this helpful. I had this problem and solved it by adding the something like this to the Hue config:
[spark] server_url=http://quickstart.cloudera:8998/ security_enabled=true livy_server_host=quickstart.cloudera
The problem for me was the hostname defaulted to "localhost" which made hue use a silly kerberos principal.
This lets it all work but everyone runs as "livy"; when I enable impersonation everything breaks.... :(