A widespread global disruption affecting Microsoft 365 services has hit Kenya's corporate sector, causing significant operational hurdles for major financial institutions and service providers. Banks including Equity, Standard Chartered, and Stanbic have reported service interruptions, with many customers unable to access email-based support or digital banking interfaces that rely on the Microsoft ecosystem.

UBA Kenya, among other affected entities, informed its customers that the outage was linked to a failure in Microsoft Outlook. The bank has advised clients to utilize alternative communication channels, such as dedicated phone lines, WhatsApp, and direct contact with relationship managers, to ensure that essential banking services remain accessible during the downtime.

Beyond the financial sector, the impact has been felt by various service-oriented businesses. Securex Agencies, a prominent Nairobi-based security firm, issued an advisory to its clients, urging them to use phone lines and social media platforms for any urgent security-related matters. Travel agencies and other corporate entities have similarly reported an inability to access email, highlighting the deep reliance on Microsoft's cloud infrastructure.

This incident follows a series of similar disruptions throughout the year, raising concerns about the lack of local alternatives for critical digital infrastructure. While the government previously explored a $1 billion data centre project with Microsoft and G42 to host an Azure cloud region for East Africa, the project has faced significant delays due to disagreements over payment guarantees. Officials maintain that the project remains on track, but the current outage underscores the vulnerability of relying on foreign-hosted cloud services.

As of Friday, Microsoft has not provided a definitive estimate for when full service will be restored. Kenyan businesses are now bracing for continued operational challenges, with many IT departments working around the clock to implement contingency plans to mitigate the impact on their daily workflows.