- Microsoft informed employees at its Africa Development Centre in Nairobi on Monday, October 12, that the engineering centre would shut down
- ICT CS William Kabogo met a Microsoft delegation to discuss the impact of the closure on local jobs and Kenya's technology sector
- Microsoft acknowledged the uncertainty caused by the changes but reaffirmed its long-term commitment to Kenya
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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
Employees at Microsoft's Africa Development Centre (ADC) in Nairobi were informed on Monday, October 12, that the engineering facility would be closing.
Source: Twitter
The development prompted an urgent intervention by the government.
What did ICT CS Kabogo say?
ICT Cabinet Secretary (CS) William Kabogo confirmed the news following a meeting with a Microsoft delegation led by Jeff Bullwinkel, vice president and deputy general counsel for corporate, external and legal affairs in Europe, the Middle East and Africa, alongside the Microsoft East Africa team led by Angela Ng'ang'a.
During the meeting, the two sides discussed the adoption of Artificial Intelligence (AI) in government, the digitalisation of public services, cybersecurity, digital infrastructure, and digital skills training delivered through universities and other institutions.
Microsoft's support for Kenya's National AI Policy and the broader innovation ecosystem also featured in the talks.
Kabogo said he used the opportunity to push back against the closure's potential impact on Kenyan workers and the wider investment climate.
"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 on X.
The CS added that Microsoft had reaffirmed its long-term commitment to Kenya, and that the ministry and the company would develop a joint action plan to take the discussions forward.
Microsoft acknowledges "uncertainty"
According to CIO Africa, Microsoft confirmed it was engaging directly with employees in Kenya regarding the proposed changes to its engineering operations.
"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," Microsoft said in a statement.
The company did not specify how many employees would be affected by the ADC closure or provide a timeline for when the changes would take effect.
The Nairobi ADC has been a significant symbol of Microsoft's investment in Africa's technology talent, having been established to harness engineering expertise on the continent. Its closure forms part of a broader global restructuring by the technology giant, which has also been shedding jobs in other markets in recent months.
Why Oracle announced job cuts
In other news, we revealed Oracle’s September job cuts, detailing how employees were informed and the compensation offered to departing staff.
The severance terms provide for a maximum payout equivalent to 26 weeks of base salary, while unvested stock options and restricted stock units are forfeited.
Some workers reportedly discovered they had lost access to company systems before receiving official termination notices. Oracle has yet to reveal the total number of employees affected by the latest layoffs.
Source: TUKO.co.ke