Microsoft reportedly shutting its Nairobi engineering centre: nearly 400 jobs at risk

On Monday (12 October 2026), staff at Microsoft's Africa Development Centre (ADC) — the engineering hub in Nairobi — were called to a morning meeting and told the centre is closing. According to TechCabal, two engineers who spoke on condition of anonymity said staff were told to meet their managers before Friday, 16 October to discuss exit options, including severance pay. Nearly 400 jobs are at risk.

However, Microsoft has not officially confirmed it is closing the centre. A company spokesperson said they are speaking directly with employees in Kenya about "proposed changes" to engineering operations — and that the company remains committed to Kenya and will continue to have employees in the country. But two other employees told TechCabal their meetings appear aimed at severance terms, not staying on. One said they knew the end was coming — just not when. The report says fewer than 10 employees are expected to remain, mostly in sales, recruiting and the AI for Good programme.

The winding down comes nearly seven years after Microsoft pledged more than $100 million to develop African tech talent. The company launched the ADC in 2019, with Nairobi and Lagos as the first two sites — the goal was for African engineers to build products for global markets without leaving the continent. The Nairobi centre was meant to hire 100 engineers by the end of 2019 and reach 500 by 2023; in December 2022 Microsoft president Brad Smith said Nairobi employed more than 450 engineers. The sister centre in Lagos was shut in May 2024.

That same Monday, Kenya's ICT minister William Kabogo met a Microsoft delegation led by Jeff Bullwinkel, the company's vice president and deputy general counsel for Europe, the Middle East and Africa, alongside Angela Ng'ang'a, who leads Microsoft's East Africa operation. Kabogo said he pressed the company to protect engineering jobs and local skills, and that both sides agreed to draft a joint action plan — but it was not disclosed what the plan will contain, or whether it could change a decision employees describe as final.

The move comes amid global cuts at Microsoft: the company announced about 4,800 layoffs in July 2026 (2.1% of its workforce), after about 15,000 in 2025 — while pouring record sums into AI infrastructure. TechCabal stresses there is no public evidence directly linking the Nairobi closure to the global cuts. Another possible factor: the $1 billion data centre Microsoft planned with Abu Dhabi's G42 in Olkaria has stalled over electricity capacity and concerns about the Kenyan government's ability to guarantee payments for the facility's capacity — although officials say the project has not been abandoned.

What does this mean for you?

For developers and engineers in East Africa: Nairobi is the nearest big market for software-engineering jobs in East Africa — and now hundreds of experienced engineers are entering the market. On one hand, that means more competition for openings; on the other, it shows that engineers trained in Africa are in demand at global companies — build your skills with the world market in mind.

For young people seeking tech jobs: The Nairobi ADC closure — after the Lagos closure in 2024 — is a reminder that even big corporate promises can change. Don't depend on one big employer: build skills you can sell to many clients — open-source projects, your own portfolio work, and professional networks.

For small businesses: Microsoft says it will keep operating in Kenya and serving regional customers — so its services are unaffected. But the decision is a business reminder: big companies re-plan their investments as priorities shift. Don't depend on a single provider for everything critical to your business.

For policy watchers: Kenya's government tried to intervene to protect jobs — but companies decide by their own arithmetic. For East African countries, the policy lesson is clear: attracting and keeping tech investment takes more than warm welcomes — it needs enough electricity (as the stalled Olkaria project shows), solid payment systems, and predictable policy. The talent is there; the infrastructure is the challenge.