Microsoft Closes Nairobi Engineering Hub Amid Concerns Over African AI Research Funding

The closure of Microsoft’s Nairobi engineering hub has raised questions about the future of African AI research initiatives, which rely heavily on external funding. Microsoft’s Africa Development Centre project, which included the Nairobi hub, was announced in 2019 with a planned $100 million investment over five years. However, the project has already seen the closure of its Lagos centre in 2024, and now the Nairobi hub is facing similar uncertainty.

The Indaba, a major African AI conference, has received funding from various sources, including the Gates Foundation, which awarded $100,000 to Deep Learning Indaba Limited in 2025. However, the conference’s funding model is not transparent, and it is unclear whether the Indaba is struggling to raise funds for its 2027 event.

Google has also been involved in African AI initiatives, with a $37 million package announced in 2025, which included funding for research groups, an AI community centre in Accra, and AI education. However, the breakdown of this funding is not clear, and it is unclear how much of it is dedicated to research initiatives.