By the 254.ke Newsroom
Microsoft has told staff at its Africa Development Centre (ADC) in Nairobi that their engineering jobs are going, according to reports published on October 13, 2026. The company calls the moves “proposed changes” and has not said how many people are affected or when they take effect. TechMoran puts the centre at about 400 employees and reports that fewer than 10 could remain. Microsoft says it “will continue to have employees in the country.”
What has Microsoft confirmed about the Nairobi layoffs?
Employees were informed on Monday, October 12. Microsoft’s statement says it is “communicating directly with employees in Kenya about proposed changes to our engineering operations,” and describes the changes as part of global restructuring. A spokesperson told local media the discussions with affected staff are private.
Microsoft has not explicitly said the Nairobi centre will close. It has not published a headcount, a timeline or severance terms. The company also has not said whether the Microsoft Africa Research Institute, which launched in 2020, is affected.
Key facts at a glance
| Item | What is known (as of October 14, 2026) |
|---|---|
| Staff told | Monday, October 12, 2026 |
| Jobs at risk | About 400 (TechMoran estimate); not confirmed by Microsoft |
| Closure confirmed? | No. Microsoft says “proposed changes” |
| Kenya presence | Microsoft says it will keep employees and keep supporting customers in the region |
| Government response | ICT CS William Kabogo met a Microsoft delegation led by Jeff Bullwinkel |
| Last-day dates, severance | Not disclosed |
How did the Africa Development Centre get here?
Microsoft opened the ADC in Nairobi and Lagos in May 2019, promising about USD 100 million over five years and 500 engineers across the two sites by 2023. In March 2022 the Nairobi team moved into offices at Dunhill Towers on Waiyaki Way, with the company saying it had put more than USD 200 million into the programme.
The Lagos centre was shut in May 2024, though Microsoft said at the time that it was “not a site closure” for the company in Nigeria and that Kenya would not be affected. That same month, Microsoft and G42 announced a USD 1 billion package for Kenya built around a planned data centre at Olkaria. Tech-ish reports the data centre has not been built and that talks reportedly stalled in May 2026.
Nairobi staff were also hit in March 2023, when Microsoft made global cuts of 10,000 roles. In July 2026 the company cut about 4,800 jobs worldwide.
What did the government say?
ICT Cabinet Secretary William Kabogo said he raised concern about local jobs and investor confidence in a meeting with a Microsoft delegation. He said Microsoft reaffirmed a long-term commitment to Kenya. The two sides are expected to draw up a joint action plan covering AI adoption in government, digital public services, cybersecurity, digital infrastructure and digital skills. No date for that plan has been given.
What does it mean for Kenya’s tech sector?
The ADC was one of the largest foreign-owned engineering teams in Kenya. Its shrinking sits awkwardly beside the country’s push to become a regional data and AI hub, which 254.ke covered in Nairobi’s data centre boom. Microsoft’s own spending shows the shift: tech-ish notes its capital expenditure rose from about USD 28 billion in the year to June 2023 to about USD 65 billion two years later, mostly on data centres. That is the outlet’s analysis, not a reason given by Microsoft.
Questions about local policy on foreign tech employers also feed into the work of the Universal Service Council and other bodies trying to build local capacity.
What are the rights of employees facing redundancy in Kenya?
Kenya’s Employment Act sets minimum procedures for redundancy, including notice to the affected employee and the local labour officer. Details for individual staff depend on their contracts. Affected employees can seek guidance from the Ministry of Labour or an employment lawyer. Microsoft has not said what it will pay beyond the legal minimum.
Frequently asked questions
Is Microsoft closing its Nairobi office?
Not entirely, according to its statement. Microsoft says it will keep employees in Kenya, but the engineering operations at the Africa Development Centre face “proposed changes” that reports say could end most jobs there.
How many jobs are affected?
TechMoran reports about 400 jobs are at risk. Microsoft has not confirmed a figure.
Does this cancel Microsoft’s USD 1 billion Kenya investment?
Microsoft has not said so. The Olkaria data centre project announced with G42 in May 2024 is separate, but it has not been built.
What happened to Microsoft’s Lagos engineering centre?
Microsoft confirmed it was closing in May 2024 while keeping a sales, marketing and support presence in Nigeria.
When do the changes take effect?
Microsoft has not given a date. This article will reflect updates as of October 14, 2026 only.
Sources: TechMoran (Oct 13, 2026), The Kenya Times (citing CIO Africa), tech-ish (Oct 12-13, 2026). Updated October 14, 2026.
