African Risk Capacity (ARC) paid $5.5 million in drought insurance payouts in Somalia based on confirmed parametric indices.
This amount was paid to the Government of Somalia (SODMA) (62.7% of the total), Start Network (21.5%) and WFP (15.8%).
As of May 2026, the three organizations have reportedly supported more than 153,000 people combined through parametric insurance payouts.
Somalia is facing a severe humanitarian crisis caused by below-average rainfall, rising food and fuel prices, conflict and insecurity, mass displacement and severe humanitarian funding shortfalls.
The failure of the 2025 Dalian season (October-December) and the 2026 weak Gu season (April-June) have further exacerbated drought conditions in pastoral and agro-pastoral areas, increasing pressure on livelihoods and food access.
As of May 2026, an estimated 6.03 million people (31% of the analyzed population) face severe food insecurity, with a credible risk of famine identified in the Bay Area’s Burha Kaba district. Humanitarian aid remains woefully inadequate to meet growing needs.
