The ISIS group in Somalia is facing a significant decline in its financial strength after operations by Puntland and U.S. support crippled networks that were crucial for collecting and transferring the group’s funds.
According to a new report by the Africa Center for Strategic Studies, ISIS-Somalia previously generated hundreds of thousands of dollars per month, with the bulk of the revenue coming from extortion and illicit taxes levied on businesses and financial services.
The U.S. stated that the group raised nearly $2.5 million in 2021, while it secured approximately $2 million during the first six months of 2022.
An ISIS-affiliated hub known as Al-Karrar played a pivotal role in this system, serving as a center for managing finances and support destined for the group’s other branches in Africa and elsewhere. A U.S. report from 2026 indicated that Al-Karrar remains critical to the transfer of funds between ISIS and its affiliates.
One of the most significant blows occurred in 2025 with the capture of Abdiweli Mohamed Yusuf, whom the U.S. had previously designated as the head of finance for ISIS-Somalia. The United States stated that the individual was responsible for a portion of the group’s revenue and for facilitating the movement of funds, fighters, and supplies.
Operations against ISIS in Puntland, which began in late 2024, have also disrupted extortion and illicit taxation networks. The Africa Center for Strategic Studies reported that the group’s revenue-generating capacity and internal operations have been significantly weakened, although it retains limited financial resources and the potential to regroup.
However, the group’s financial decline does not mean that ISIS-Somalia has completely lost its capabilities. Recent reports indicate that the group is still able to raise limited funds, potentially allowing it to continue small-scale operations and maintain some ties to its global network.
