Saudi labour reforms blamed for decline in Kenyan diaspora remittances

NAIROBI, Kenya, Oct 2 – Changes in Saudi Arabia’s labour laws have contributed to a decline in the number of Kenyan workers in the country, affecting money 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, one of Kenya’s traditional sources of diaspora remittances. He spoke on Friday during an engagement with the National Assembly Departmental Committee on Finance and National Planning in Machakos, where lawmakers sought an update on monetary developments and the domestic economy. CBK data shows that remittances from Saudi Arabia dropped by more than half in the first nine months of 2026, falling to about $121.5 million from $251.3 million in the same period last year. The decline contributed to a slight fall in overall diaspora remittances, which stood at approximately $3.77 billion between January and September, marginally below the amount recorded during the corresponding period in 2025. Inflows from North America, which accounts for the largest share of Kenya’s remittances, also weakened during the period, partly offsetting gains from other regions. The slowdown follows a record year in 2025, when Kenyans abroad sent home about $5 billion, representing annual growth of 1.9 percent. Diaspora remittances are an important source of foreign exchange for Kenya, supporting household spending and helping finance the country’s external payments. Thugge did not provide figures on the number of Kenyan workers affected by Saudi Arabia’s labour reforms during Friday’s committee session.