Ethiopia's Khat Exports to Somalia Decline by 35 Percent

According to a 2026 report by Somalia's National Economic Council, Somalia spent 450.4 million USD on khat imports in 2025, exceeding the country's federal domestic revenue of 404.3 million USD. Amidst this significant market, Ethiopia's formal khat exports to Somalia saw a 35 percent decline in the first quarter of the 2025/26 fiscal year compared to the previous year. The trade dynamics are heavily influenced by competition with Kenya, which remains a major supplier, and by diplomatic tensions between Addis Ababa and Mogadishu. Analysts note that political relations, customs procedures, and transport arrangements directly impact this perishable agricultural trade. While khat remains a vital income source for Ethiopian farmers and traders, official figures show a noticeable contraction in shipments to the Somali market.