Microsoft to Shut Part of Nairobi Engineering Hub in Major Restructuring Move

Microsoft is planning to close part of its Africa Development Centre (ADC) in Nairobi as part of a restructuring of its engineering operations, with the company already notifying affected employees about the proposed changes.

The technology giant confirmed the development to media, stating that it was engaging directly with employees in Kenya regarding the planned changes.

“We are communicating directly with employees in Kenya about proposed changes to our engineering operations. We recognize the uncertainty this brings and are keeping those discussions private,” a Microsoft spokesperson said.

The company, however, reaffirmed its commitment to Kenya, noting that it would maintain a presence in the country and continue supporting its digital transformation and innovation agenda.

Microsoft established the Nairobi-based Africa Development Centre in 2019 to serve as a regional engineering hub focused on software development, research, design and innovation.

The facility also hosted Microsoft Garage, an initiative designed to encourage technological innovation and support the development of new ideas.

By 2022, the centre had expanded to employ more than 450 full-time staff members working across various fields, including software engineering, machine learning, data science, market research and infrastructure.

The planned closure comes amid a broader wave of restructuring and operational changes among multinational companies in Kenya.

In December 2024, consumer goods manufacturer Procter & Gamble withdrew from the Kenyan market, a move that resulted in the loss of more than 850 jobs. The company attributed its exit to factors including high operating costs, currency fluctuations and declining sales.

Meanwhile, pharmaceutical company GlaxoSmithKline ended its direct operations in Kenya after approximately six decades, while banknote printing firm De La Rue cut its workforce in the country by 40 per cent.