Growing Conflict Between Qat Traders and Laascaanood Administration Threatens to Spiral Into Violence

LAASCANOOD – A growing dispute between qat traders and the North Eastern State administration over taxation and security is threatening to escalate into wider violence, local sources report, as armed attacks on shipments have left valuable cargo stranded at the city’s airport.

The traders, who import qat from Djibouti, say the Ministry of Finance, which is responsible for collecting qat taxes through an entity known as Hirad, has increased taxes while ignoring repeated complaints about worsening security along the supply routes. Traders say they are already forced to pay multiple taxes each day, in addition to nightly fees imposed by various checkpoints.

Attacks on Shipments

The situation deteriorated sharply when two Djiboutian qat shipments were attacked and captured by armed militia in Guumays on 11 July and Fiqi Fuliye on 12 July. The traders’ qat is now stranded and drying out at Laascaanood Airport due to fear of another attack if they attempt to transport it.

The traders have warned that urgent action is needed before the situation escalates further. The attacks have not only disrupted the qat supply chain but have also heightened tensions between the traders and the local administration, which relies heavily on qat tax revenue to sustain its limited operations.

Economic Dependence on Qat Revenue

Laascaanood, the administrative capital of the Sool region, has been under the control of North Eastern State forces since August 2023, when Somaliland forces withdrew following months of intense conflict. The city is at the centre of a territorial dispute between Somaliland, Puntland and the federal government of Somalia.

The conflict that led to North Eastern State’s control of Laascaanood began in February 2023, when local tensions escalated following the assassination of civil leaders in Las Anod, culminating in a violent crackdown by Somaliland security forces on civil protests. The popular uprising that followed united local clans and led to the eventual withdrawal of Somaliland forces.

The North Eastern State administration relies heavily on qat tax revenue to sustain its limited operations. Prime Minister Hamza Abdi Barre made his inaugural official visit to Laascaanood, the capital of the North Eastern State administration, in April 2025, engaging with local authorities and assessing the aftermath of recent conflicts.

Security Concerns and Traders’ Grievances

Traders have long complained about the security situation along the qat supply routes. The qat trade has emerged as a significant element of Somalia’s war economy, with traders often forced to pay double taxes and fees to competing administrations and numerous district authorities situated along transport corridors.

The recent attacks on qat shipments are not isolated incidents. In June 2026, deadly inter-clan violence erupted in the Sool region after a khat trader was killed, triggering a cycle of retaliatory violence. Traders continue to have security concerns about revenge killings and assassinations, and the perception that Laascaanood is a conflict-ridden area has made it difficult for traders to obtain credit.

Administration’s Response

The North Eastern State administration has been working to consolidate its authority in the region. President Hassan Sheikh Mohamud attended the inauguration of Abdulkadir Ahmed Aw-Ali Firdhiye as the President of the North Eastern State in January 2026. The state, formerly known as “SSC-Khaatumo” during its transitional phase, has now attained full federal status and is officially recognized by the Federal Government of Somalia as a federal member state.

The Prime Minister has invited North Eastern State leaders to participate in National Consultative Council meetings, reflecting the federal government’s engagement with the administration.

However, the administration’s reliance on qat revenue has created tensions with traders, who argue that increased taxes and fees are not matched by improvements in security. North Eastern State has rejected the channeling of humanitarian funds through Somaliland, insisting that aid be delivered directly to the region. This has placed additional pressure on the administration to generate domestic revenue.

Regional Context

The dispute over qat taxation and security in Laascaanood reflects broader tensions in the Sool region, which has long been a flashpoint between competing authorities. Somaliland has accused the Federal Government of backing a rival administration in eastern Sool, viewing it as an infringement on its claimed territorial integrity.

Somaliland has already lost large parts of the Sool region, which are now under the control of North Eastern State. The involvement of Djiboutian qat traders in the current dispute adds an international dimension to the conflict, as Djibouti has maintained diplomatic ties with both Somalia and Somaliland.

Way Forward

The qat traders have warned that urgent action is needed before the situation escalates further. The North Eastern State administration faces a difficult balancing act: it must maintain revenue streams to fund its operations while addressing the legitimate security concerns of traders who are essential to the local economy.

As Laascaanood continues to recover from the 2023 conflict, the ability of the administration to resolve this dispute will be a test of its capacity to govern effectively. The federal government, which has invested political capital in supporting the North Eastern State, may also need to intervene to prevent the situation from spiraling into wider violence.