Background: In Somaliland, mental health has long been neglected, with minimal infrastructure and support. Until recently, there were no dedicated offices, staff, or funding within the Ministry of Health, leading to a lack of quality services confined to limited inpatient facilities. This situation resulted in many unregulated private facilities with questionable standards of care.

Objectives: In response to public demand for better mental health services, the Somaliland government implemented a pioneering initiative in late 2020 to fund mental health services through a sin tax on khat. This approach aimed to improve mental health care and integrate services into the public health system.

Methods: Tax collection began in January 2021, with the first funds allocated by July 2021. Subsequently, a five-year National Mental Health Program was launched, focusing on revitalizing services, enhancing resources, and improving access to care throughout the region.

Results: Significant advancements include the establishment of a new Department of Mental Health within the Ministry, recruitment of specialized staff, and the initiation of training programs based on the WHO's Mental Health Gap Action Programme (mhGAP). New mental health units were set up in underserved regions, and integration into primary healthcare commenced. Community outreach teams provide follow-up care and support to discharged patients, alongside advocacy campaigns to raise awareness.

Conclusions: These developments underscore the potential for innovative funding mechanisms, such as targeted taxation, to transform mental health services in resource-strained countries. Somaliland’s experience serves as a valuable model for other nations facing similar challenges in mobilizing local resources to enhance neglected mental health care.