Microsoft to shut Nairobi engineering centre, putting hundreds of jobs at risk

Microsoft’s Africa Development Centre was an engineering hub in Nairobi’s Westlands district. It was launched in 2019 to develop African technology talent and make Kenya one of Microsoft’s engineering locations outside the United States. The idea mattered because engineers could do globally important work from their home countries.

The centre was housed in Dunhill Towers and employed engineers working within Microsoft’s global engineering organisation. Microsoft also had teams connected to AI for Good, an initiative applying artificial intelligence to social and environmental challenges. The centre was part of a broader plan covering Nairobi and Lagos.

Microsoft now plans to wind down the Nairobi operation, putting nearly 400 jobs at risk. The company says it remains committed to Kenya, but has not confirmed the closure’s timing or explained exactly which engineering activities will continue. The change therefore challenges the centre’s original promise of building global products from Africa.

The proposed wind-down could affect nearly 400 jobs at Microsoft’s Nairobi engineering centre. Employees were called to meetings and asked to discuss exit options, including severance terms. People familiar with the matter expect fewer than 10 employees to remain, although Microsoft has not publicly confirmed the final number.

The centre reached more than 450 engineers by December 2022, according to Microsoft President Brad Smith. That figure is especially significant because Microsoft originally planned to hire 100 engineers by the end of 2019 and grow Nairobi and Lagos together to 500 by 2023. Nairobi had therefore met, and apparently surpassed, its initial ambition.

The figures show why the decision is so consequential. This is not a small office being trimmed at the edges. It could remove most of a large engineering workforce built over seven years, while leaving a small group in sales, recruiting, customer relationships, and AI for Good.

Microsoft has not disclosed why it is closing the Nairobi centre. The decision comes during a wider restructuring, including about 4,800 job cuts announced in July 2026 and roughly 15,000 cuts in 2025. Microsoft is also committing record sums to artificial intelligence infrastructure, creating questions about which operations will continue receiving funding.

The article identifies several possible pressures, not a confirmed cause. A remote engineering centre could face scrutiny during global reductions. Maintaining a large local workforce may also be expensive, especially because of its tax bill. Separately, Microsoft’s planned $1 billion data centre with G42 in Kenya has stalled over electricity capacity and payment-guarantee disagreements.

Microsoft has not publicly connected Nairobi’s closure to the global cuts. Its spokesperson said the company was discussing proposed changes directly with Kenyan employees and remained committed to Kenya. The restructuring therefore provides context, but the centre’s specific fate and the reasons behind it remain partly undisclosed.

If the centre closes, affected engineers will meet managers to discuss exit options and severance terms. People familiar with the matter expect fewer than 10 employees to remain, mostly outside the main engineering workforce. Microsoft has not stated how many staff will stay or when changes will take effect.

For Kenya’s technology sector, the immediate consequence would be the removal of a large employer that trained and deployed engineers on global work. The centre also symbolised Kenya’s ambition to become a technology hub. Its closure could reduce the number of local roles connected to international software development, although the article does not measure that broader effect.

The article points to another possible consequence: the cost of maintaining a large local workforce, particularly its tax bill, was mentioned as a factor. It does not provide tax figures or say how government revenue would change. Microsoft says it remains committed to Kenya and will support digital transformation and innovation.

Microsoft invested more than $100 million in developing African technology talent and launched the Africa Development Centre in 2019. The project aimed to make Nairobi an engineering hub outside the United States. It also promised that African engineers could build products for global markets while remaining on the continent.

Microsoft planned 100 engineers by the end of 2019 and 500 across Nairobi and Lagos by 2023. By December 2022, Nairobi employed more than 450 engineers. That growth gave Kenya a substantial workforce connected to a global engineering organisation and made the country part of Microsoft’s international software-development network.

The planned wind-down would reverse that seven-year expansion. It follows Microsoft’s 2024 closure of its Lagos centre, although the company then said Kenya would not be affected. The Nairobi decision raises questions about Microsoft’s long-term engineering plans in Africa, even as it says Kenya remains important for digital transformation and innovation.

Departing engineers may look for roles at Kenyan banks, telecommunications companies, startups, or other technology firms. Their experience with Microsoft’s global engineering organisation could make them relevant to employers seeking software and artificial-intelligence skills. However, the article does not name specific hiring plans or confirm where affected employees will go.

The scale creates the main challenge. Nearly 400 jobs could be affected, while fewer than 10 employees are expected to remain at the centre. Kenya’s local technology companies might hire some engineers, but the source provides no evidence that banks, telcos, startups, or other firms have enough open positions to absorb the entire workforce.

The article therefore supports a cautious conclusion. The engineers represent a significant pool of talent created through Microsoft’s seven-year investment, but their next destinations are unknown. Whether they stay in Kenya, join other international employers, or leave the country is not stated. Microsoft has also not disclosed final staffing numbers or timelines.

An engineering hub is a central location where software engineers develop products or systems for a company’s wider business. Microsoft’s Nairobi centre was designed to let engineers do meaningful work from Kenya while participating in a global engineering organisation. It was therefore more than a local support office.

Microsoft’s plan shows the mechanism clearly. The company pledged more than $100 million for African technology talent, opened centres in Nairobi and Lagos, and aimed to grow their combined workforce to 500 engineers by 2023. Nairobi eventually employed more than 450 engineers, connecting Kenyan workers to global software development.

Technology companies locate teams in particular countries to build talent bases and distribute engineering work internationally. In this case, Microsoft said the centre would support Kenya’s digital transformation and innovation ambitions. The planned closure shows that such hubs can also be reshaped when companies restructure or redirect resources, especially during heavy AI investment.