Saudi Arabia Labour Law Changes Reduce Kenyan Workers and Remittances
Changes in Saudi Arabia’s labour laws have contributed to a decline in the number of Kenyans working in the country, affecting diaspora remittances sent home, Central Bank of Kenya (CBK) Governor Kamau Thugge has told MPs.
Thugge said the changes, which prioritise skilled workers over semi-skilled labour, had reduced the number of Kenyans remaining in Saudi Arabia, traditionally one of Kenya’s sources of diaspora remittances.
He spoke on Friday during an engagement with the National Assembly Departmental Committee on Finance and National Planning in Machakos. Lawmakers sought an update on monetary developments and the state of the domestic economy.
According to CBK data, remittances from Saudi Arabia declined by more than half in the first nine months of 2026, falling to approximately $121.5 million from $251.3 million recorded during the same period in 2025.
The drop contributed to a slight decline in overall diaspora remittances, which stood at approximately $3.77 billion between January and September 2026. The figure was marginally lower than the amount recorded during the corresponding period last year.
Remittance inflows from North America, Kenya’s largest source of diaspora earnings, also weakened during the period, partly offsetting gains recorded from other regions.
The slowdown comes after a record performance in 2025, when Kenyans living and working abroad sent home approximately $5 billion. The amount represented an annual growth of 1.9 per cent.
Diaspora remittances remain an important source of foreign exchange for Kenya. The funds support household spending, contribute to economic activity and help finance the country’s external payments.
However, the changing labour market requirements in Saudi Arabia could affect the number of Kenyans seeking or maintaining employment opportunities in the Gulf nation.
Thugge did not disclose the number of Kenyan workers affected by the Saudi Arabian labour reforms during his engagement with the parliamentary committee.
