Mogadishu, 2026
Somalia’s domestic revenue collections reached USD 404.31 million in FY2025, a 9.4 percent increase over FY2024, according to the Ministry of Finance’s Annual Revenue and Operational Performance Report. The Ministry of Finance attributed this growth to stronger tax compliance, expanded taxpayer registration, improved administration of non-tax revenue, and the deployment of digital systems across key revenue streams.
Although SAI Somalia does not collect revenue, its role is to ensure that the systems, institutions, and controls responsible for revenue administration function as they should. It identifies weaknesses before they become losses, recommends reforms before gaps become routine, and follows up to confirm that corrective action delivers real results. This is a different kind of contribution, and in the long run, it is an indispensable one.
Stronger Laws, Better Systems, Tighter Controls
SAI Somalia’s audit findings and recommendations on income tax compliance contributed to the conditions that supported Somalia’s income tax reform. The new Income Tax Act, signed into law in May 2025, strengthens the legal foundation for income tax administration. It creates a more enforceable and sustainable framework for domestic revenue mobilization going forward.
On customs, SAI Somalia assessed the governance and internal controls of the Somalia Customs Administration System. Following audit recommendations, Security Controls reached 100 percent implementation, General Controls achieved 75 percent full implementation, and Application Controls showed measurable progress. In parallel, SOMCAS became fully operational, was integrated with the government’s central financial management system, and replaced a legacy platform. This improved the accuracy and reliability of customs revenue data.
Closing a USD 10 Million Control Gap
An audit observation that government service fees exceeding USD 10 million lacked a formally approved tariff framework led to one of FY2025’s most tangible revenue administration reforms. The Ministry of Finance regularized the tariff structure in line with the Public Financial Management Act and integrated it into the Non-Tax Revenue Portal. This brought consistency, transparency, and accountability to an area of public revenue that previously carried significant leakage risk.
Why Independent Audit Matters More Than Ever
The FY2025 revenue milestone reflects the collective effort of Somalia’s revenue institutions, supported by reform, technology, and accountability. SAI Somalia’s contribution is expressed not in revenue collected, but in weaknesses identified, recommendations implemented, laws strengthened, and controls improved. Such progress is audit impact in practice.
As Somalia’s domestic revenue base continues to grow, the stakes of sound public financial management grow with it. Every dollar collected must be properly recorded, reported, and protected. Independent oversight is not a one-time intervention. It is a continuous accountability function that helps ensure public resources are managed with integrity and in the public interest.
SAI Somalia remains committed to that function. In the years ahead, SAI Somalia will continue to expand its audit coverage, deepen its engagement with digital systems and emerging revenue platforms, follow up rigorously on the implementation of audit recommendations, and support reforms that strengthen Somalia’s public financial management architecture. As domestic revenue mobilization advances, SAI Somalia’s oversight role will advance with it. This provides the independent assurance that government institutions, development partners, and the Somali people can rely on.
