Government Remittances from Saudi Arabia Plunge After New Work Permit Rules
Kenya’s remittance inflows from Saudi Arabia have dropped sharply—by more than half—following the Gulf nation’s rollout of a skills-based foreign worker permit system that is reshaping migrant employment and earnings.
The new framework, which categorises foreign workers by skill level and ties permits to stricter wage and qualification thresholds, has disrupted income streams for thousands of Kenyan migrants—many of whom work in low- to mid-skilled sectors such as domestic services, construction, and hospitality.
For Kenya, the decline is significant. Remittances are a major source of foreign exchange, often outperforming key exports like tea and tourism. A sustained drop from a major corridor like Saudi Arabia could put pressure on household incomes and the country’s external balances.
Analysts note that the policy reflects a broader Gulf trend toward labour market nationalisation and skills prioritisation, as governments seek to reduce reliance on low-skilled foreign labour while boosting productivity.
The development also highlights the vulnerability of African economies to external labour policy shifts, particularly in regions where migrant workers form a critical economic link between host and home countries.
Kenyan authorities are expected to engage diplomatically while also exploring labour diversification strategies, including opening new migration corridors and investing in skills development to align workers with evolving international labour demands.
