The Republic of Somalia gained independence on 1st July 1960 and nine years later General Mohamed Said Barre took power through a coup. In 1991 anarchy ensued after his expulsion and since then Somalia has been in a protracted conflict for over twenty four years with a lack of proper institutions for governance and the political capacity to function as a state. Fighting among leaders of rival factions and the lack of a stable functional government enables the Islamist militia, al Shabaab, whose objective is to establish a Somali caliphate in the entire nation, to unleash terror on Somalis and conduct terrorist activities in the region. These terrorist activities are a threat to regional stability, peace and security, and Kenya's national interests. The magnitude of the issue has led to the deployment of African Mission in Somalia (AMISOM) peace keepers and the entry of Kenya Defense Forces into Somalia to dislodge al Shabaab from their strongholds. This paper analyses the threat posed by al Shabaab and recommends an approach required to stabilize Somalia and mitigate the threat.