Microsoft has informed employees at its Africa Development Centre (ADC) in Nairobi that the engineering facility will be shut down as part of the technology company’s ongoing global restructuring.
The announcement was communicated to staff on Monday, October 12, 2026, raising concerns about potential job losses and the impact on Kenya’s technology industry.
The development prompted discussions between the government and Microsoft representatives, with ICT Cabinet Secretary William Kabogo seeking assurances on the future of local talent and investment.
What the government said about Microsoft’s decision
Kabogo confirmed the development after meeting a Microsoft delegation led by Jeff Bullwinkel, the company’s vice president and deputy general counsel for corporate, external and legal affairs in Europe, the Middle East and Africa. The delegation also included the Microsoft East Africa team led by Angela Ng’ang’a.
The discussions covered several areas of cooperation, including the adoption of artificial intelligence (AI) in government, digital public services, cybersecurity, digital infrastructure and digital skills development through universities and other institutions.
The meeting also addressed Microsoft’s support for Kenya’s National AI Policy and the country’s wider technology innovation ecosystem.
Kabogo said he raised concerns about the potential consequences of the engineering centre’s closure, particularly for Kenyan employees and investor confidence.
“Microsoft briefed me on its evolving operations in Kenya in the context of its global restructuring. I stressed the importance of retaining local talent, protecting jobs at Microsoft’s Nairobi engineering centre and sustaining investor confidence in Kenya’s technology sector. I also reaffirmed the government’s commitment to a competitive and transparent environment for investment,” Kabogo said in a statement posted on X.
The Cabinet Secretary added that Microsoft had reiterated its long-term commitment to Kenya. He said the ministry and the company would develop a joint action plan to advance discussions following the meeting.
Microsoft responds to the planned closure
According to CIO Africa, Microsoft confirmed that it was engaging directly with its Kenyan employees regarding the proposed changes to its engineering operations.
The company acknowledged the uncertainty surrounding the decision but maintained that it would continue operating in Kenya.
“We acknowledge the uncertainty these changes may cause and are keeping the discussions confidential. Microsoft remains committed to Kenya and will maintain a workforce in the country while continuing to support its digital transformation and innovation goals,” the company said.
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Microsoft did not disclose the number of employees who could be affected or provide a timeline for implementing the changes.
The Nairobi-based Africa Development Centre has been an important part of Microsoft’s investment in African technology talent, bringing engineering expertise from the continent into its development operations.
Its planned closure comes amid a wider restructuring exercise by the technology giant, which has also reduced its workforce in other markets in recent months.
Oracle also announces job cuts
The developments at Microsoft come amid wider job reductions across the global technology industry, including recent layoffs at Oracle.
Reports on Oracle’s September job cuts indicated that affected employees were offered severance packages capped at 26 weeks of base salary. Unvested stock options and restricted stock units were also subject to forfeiture.
Some employees reportedly lost access to company systems before receiving formal termination notifications.
Oracle had not disclosed the total number of workers affected by the latest round of layoffs.
