By Asha Elmi - Reporter
SOMALIA, Aug. 16, 2026 — Former Somali Prime Minister Hassan Ali Khaire accused the federal government of corruption and economic mismanagement on Saturday, saying its policies had contributed to economic hardship, weakened businesses and undermined public confidence in state institutions.
Khaire, a prominent opposition politician, made the allegations in a speech assessing Somalia’s economic performance after more than four years of President Hassan Sheikh Mohamud’s administration. The federal government has not yet publicly responded to the allegations.
Khaire said economic growth had weakened and household purchasing power had declined, citing figures he attributed to a May 2026 World Bank report on Somalia’s economy.
According to Khaire, Somalia’s real gross domestic product fell by 3% in 2025, while purchasing power declined by 5.7%. He said the deterioration had directly affected households and businesses.
Khaire said 2025 had been one of the weakest years for Somali businesses in a decade, with some companies closing and others reducing staff or cutting wages. He also accused the government of pursuing policies that had hurt investment in land and weakened the country’s banking sector.
He accused the government of allowing corruption and mismanagement to undermine economic development.
“Corruption is the killer of the economy and statehood,” Khaire said, arguing that corruption was draining public resources and obstructing national development.
Khaire also alleged that informal checkpoints had returned along roads between Afgooye and Mogadishu, saying farmers were being forced to make payments at 16 checkpoints. He said the practice was hurting agricultural production and contributing to higher food prices.
He further accused companies operating at Mogadishu port of imposing an additional $320 charge per container, saying the fees were placing further pressure on importers.
Khaire said inflation had reached 6%, citing the World Bank, and argued that rising prices and costs were putting additional pressure on Somali households and businesses.
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He also criticised the government’s management of internationally funded development projects, accusing it of failing to make effective use of hundreds of millions of dollars allocated to Somalia.
Khaire said the World Bank, African Development Bank and Global Partnership for Education allocated more than $330 million for development projects in Somalia in 2024, but that $240 million, or about 73%, was not used.
He said more than $407 million was allocated in 2025, of which $285 million, or about 70%, remained unused.
Khaire said the unspent funds represented lost opportunities to create jobs, stimulate economic growth and support social development.
He also accused the government of failing to improve conditions for vulnerable Somalis, saying the number of internally displaced people had risen from 2.9 million in 2022 to 3.4 million, while 6.5 million people were facing food insecurity and difficult humanitarian conditions.
Khaire said the combined effects of economic hardship, corruption and what he described as weak government capacity had left Somalia poorer than when President Hassan Sheikh took office.
“The facts recorded in Somalia and the reality on the ground show that Somalia is poorer today than it was on the day he was elected,” Khaire said.
He called on business leaders, intellectuals and the wider Somali public to assess what he described as the damage caused by the current administration and to work together to protect the country’s future.
The Somali federal government has not yet issued a public response to Khaire’s allegations.