diff --git a/system-settings/plugins/keyfile/Makefile.am b/system-settings/plugins/keyfile/Makefile.am
index 2d3d2611e4..f4f24ff807 100644
--- a/system-settings/plugins/keyfile/Makefile.am
+++ b/system-settings/plugins/keyfile/Makefile.am
@@ -41,6 +41,6 @@ libnm_settings_plugin_keyfile_la_LIBADD += \
 endif
 
 install-data-hook:
-	mkdir -p $(keyfile_dir)
+	mkdir -p $(DESTDIR)$(keyfile_dir)