Monthly observed and future precipitation magnitudes were subjected to statistical trend analysis to examine possible time series behavior. Future precipitation was downscaled from large-scale output through statistical downscaling. The observed and downscaled future precipitation was analyzed for drought events using the Standardized Precipitation Index (SPI) method. In the Abaya Chamo sub-basin, Ethiopia precipitation is explained by below average magnitudes in most of the low land area, characterized by moderate to extreme drought episodes. Nine drought events were discerned during the period of 1988 to 2015, i.e. once in three years, resulting in harvest failure and subsequent food insecurity. The NCEP-NCAR and CanESM2 model predictors were used to statistically downscale the precipitation data. The monthly observed and downscaled precipitation magnitudes were in good agreement. The RCP-2.6, RCP-4.5 and RCP-8.5 long-term future scenarios were computed to evaluate future drought patterns. The mean annual precipitation scenario decreased by 0.2% to 13.7%, 0.5% to 6.4% and 0.1% to 1.3% for the period from 2016 to 2040, 2050s and 2080s respectively. The increase in mean precipitation was projected to be 0.7% to 12.2%, 0.2% to 11.7% and 0.1% to 17.8% for the period from 2016 to 2040, 2050s and 2080s respectively. The present analysis may provide useful information associated to drought events to decision makers and can be used as a basis for future research in this area.