Hi!
Yes the css edit option has moved from the admin panel inside the template manager (also on the admin panel).
A couple things:
Be aware that if you manually edit the original template files, the next upgrade will override these changes.
You have various options to get around that without much effort.
First make sure you read this tutorial thread:
www.kunena.com/forum/170-k-16-templates-...na-16-template#53519
In addition you can take the sample template, make a copy and create your own more sophisticated version of it.
Changes in both places will not get touched by any version upgrades of Kunena.
Last but not least be aware that Kunena 1.6 uses minified css and js files by default. If you have to edit the template files, I suggest you set Kunena itself into debug mode (not Joomla - unless you want to). This will make Kunena use un-minified versions of the css and js files. It will make it a lot easier to make the edits, as the minified files are very hard to read by a human.
Once you are done with the edits, simply minify your edited file and replace the original minified css file with your new one. After that you can disable debug mode inside of Kunena and all the changes will be there.
While I have not used this online tool here is a link to an online YUI compressor:
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Simply copy the content of the cleartext css file into the input box, run it and take the output and replace the content of the minified file with it.
As always: make a backup before you make any changes.
Hope this helps!