Nairobi, Kenya – The Ministry of Finance of Somalia’s newest federal member state, the Northeast State, has announced its successful participation in the 20th Inter-Governmental Fiscal Federalism Technical Committee (IGFF-TC) meeting held in Nairobi, marking a major step forward in its fiscal negotiations and policy alignment.
According to officials, the state delegation achieved tangible progress on several priority areas that directly impact revenue generation, tax administration and intergovernmental coordination.
One of the most significant outcomes was progress toward a revised revenue-sharing formula, a longstanding issue affecting how national resources are allocated among federal units. The new framework under discussion is expected to reflect population realities, economic potential and service delivery needs, giving Northeast State a stronger position in fiscal transfers.
Delegates also reported movement on the expansion of the sales tax, a development aimed at widening the state’s revenue base. The expansion will empower state authorities to tap into a broader range of commercial activities and improve domestic revenue mobilization.
Another major achievement was the commitment to address and resolve cases of double taxation, which have posed a challenge for businesses and individuals operating across multiple jurisdictions. The resolution is expected to reduce administrative burdens, enhance compliance and foster a more business-friendly environment.
In a statement, the Ministry of Finance expressed pride in the state’s role at the summit, emphasizing that these gains will strengthen economic governance and support sustainable development.
The Nairobi meeting brought together finance officials and technical experts from multiple federal member states and development partners to align fiscal practices, promote harmonized taxation and enhance cooperation between tiers of government.
With negotiations advancing on key fiscal reforms, the Ministry of Finance said it will continue to engage stakeholders to ensure the new arrangements are effectively implemented and beneficial to citizens and investors alike.