Saudi Arabia announces end to sponsorship (Kafala) system

Saudi Arabia has announced the end of its decades-old sponsorship (Kafala) system, which controlled the lives of millions of migrant workers for more than seven decades.

According to Saudi authorities, a comprehensive legal framework has been established to protect the rights of expatriate workers and ensure justice and transparency.

The abolition is part of the reforms unveiled in June 2025 to enhance the work environment and bolster expatriate worker rights.

The end of the decades-old Kafala system is one of the most sweeping changes to the Gulf country’s labour framework and is expected to directly benefit around 13 million foreign workers. It is estimated that more than 300,000 Kenyans are working in Saudi Arabia, establishing it as the primary destination for Kenyan workers in the Gulf region. Kenyans are employed in Saudi Arabia’s construction, healthcare, domestic, and service sectors.

The word Kafala, meaning “sponsorship” in Arabic, referred to a structure in which a local employer, or Kafeel, took legal responsibility for a foreign worker’s visa and residency. Introduced in the 1950s during the region’s oil boom, it was initially a way to regulate the growing flow of labour from abroad.

Over time, the system began to be abused. Employers often confiscated passports, delayed wages, and restricted travel. Workers could not change jobs, leave the country, or even file complaints without their sponsor’s consent.

Domestic workers were among the worst affected, facing isolation, excessive hours, and emotional or physical abuse.

According to the Saudi Ministry of Human Resources, the Kafala system is being replaced with a contract-based model that modernises employer-employee relations.

Employment will be contract-based rather than sponsor-based. Workers can switch jobs without their employer’s approval and leave the country without exit visas or consent from a sponsor.

In addition, workers have greater recourse to labour courts and dispute resolution mechanisms.

Henceforth, employment contracts will be registered and verified through digital platforms such as Qiwa, enhancing transparency and compliance.

For domestic workers, the Musaned Platform provides several benefits, including insurance, compensation for domestic workers in cases of permanent total or partial disability resulting from accidents. It also provides compensation if the employer fails to pay salaries and financial dues due to the employer's death or permanent total or partial disability.

Saudi Arabia’s workforce relies heavily on migrants—roughly 42 percent are foreign workers employed in sectors such as construction, agriculture, and domestic work.

For Kenyan workers working in the Gulf nation, the change will further encourage more Kenyans to seek economic opportunities in the Arab nation. Last year, Kenyans working in Saudi Arabia were the second biggest drivers of growth in cash wired back home, a move that underscores the economic importance of Kenyans working in the Gulf country.