This paper provides an overview of the municipal finance system of Hargeisa, the capital city of the self-declared Republic of Somaliland. The city is the centre of economic activity for the whole country, and the source of most of the country’s GDP. Hargeisa has undergone various reforms of its municipal finance system over the past years, to the extent that some believe it has stronger administrative capacity than at the national level. For example, with support from development partners, it has a computerised revenue management system, which allows the city to more accurately record its annual revenues, expenditures and budgets. These reforms have been associated with a substantial increase in revenue by over 80% between 2010 and 2016, with a continuing upward trend. However, in absolute terms, revenues at about 9.5 million USD for the FY 2016 remain small. This is particularly compared to the overall expenditure responsibilities of the city as a result of Somaliland’s decentralised system, as well as the overall developmental needs of the city.