The payments went to 17,734 pastoralists who had previously enrolled in drought coverage for the Gu season in April 2025 and the Dayr season in October 2025. Somali officials quoted by State Media said the payout was triggered after satellite-based monitoring detected significantly below-average rainfall between October and December 2025, leading to severe pasture loss.

Funds were transferred directly to beneficiaries through mobile money accounts, enabling herders to quickly access compensation following the drought-related losses.

Authorities stressed that the funds were not emergency aid but insurance payouts for pastoralists who had purchased coverage through a Takaful system. The Sharia-compliant model operates on principles of mutual risk-sharing and cooperation among participants.

The payments were made under the DRIVE livestock insurance program, an initiative supported by the World Bank that aims to strengthen the financial resilience of pastoralist communities vulnerable to climate shocks.

The De-risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa (DRIVE) project aims to strengthen the resilience of pastoralist communities by expanding access to financial services and livestock markets. Operating in Djibouti, Ethiopia, Kenya, and Somalia, the initiative helps pastoralists manage drought risks linked to climate change by providing financial tools such as livestock insurance. The project also works to integrate pastoralists into livestock value chains, attract private investment, and support regional livestock trade to improve market access and increase the value of pastoral production across the Horn of Africa.

In Somalia, nearly 6.5 million people are affected by worsening drought conditions, according to Norwegian Refugee Council. Families are struggling to find water for their livestock as wells and water sources continue to dry up.

For many rural communities, livestock is the main source of food and income. As animals die, families are losing not only their livelihoods but also their ability to survive. The loss of even a few animals can push households from coping into displacement.