The Khat Conundrum: Balancing Economic Reality, Social Welfare, and Sovereignty in Public Policy for Somaliland

Abstract

This study examines the policy dilemma surrounding khat (Catha edulis) in Somaliland by assessing its economic contributions, socio-health consequences, and regulatory challenges within a context of limited international recognition. Using a desk-based mixed-methods approach, the study analyzed 45 documentary sources, including peer-reviewed articles, government reports, legal documents, and international organization publications. The findings reveal that khat generates approximately 20–30% of Somaliland’s domestic revenue and supports thousands of direct and indirect jobs, making it a critical component of fiscal sustainability. At the same time, chronic consumption contributes to household income diversion, food insecurity, cardiovascular disorders, oral diseases, and mental health problems. The analysis further shows that existing regulations prioritize revenue collection while providing limited mechanisms for public health protection and social harm reduction. The study introduces a sovereignty–fiscal dependency perspective, demonstrating how Somaliland’s political status constrains regulatory flexibility. The findings suggest that balanced regulatory strategies integrating revenue preservation, harm reduction, and economic diversification offer a more sustainable policy pathway than outright prohibition.