SHA Claims, IMF Warning, Green Manufacturing, & Trade Issues-Today's Money News

𝐖𝐞𝐥𝐜𝐨𝐦𝐞 𝐭𝐨 T𝐨𝐝𝐚𝐲’𝐬 M𝐨𝐧𝐞𝐲 N𝐞𝐰𝐬 R𝐨𝐮𝐧𝐝 U𝐩: Wednesday, 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 6, 𝟐𝟎𝟐𝟒‍

In its first month, Kenya’s new Social Health Authority (SHA) portal has processed over Sh1.6 billion in health service claims from hospitals, according to a report by the Nation.  While SHA has improved claim submissions, healthcare providers still face delays in payments, technical issues with the portal, and difficulties reaching the SHA contact center. These issues are causing some hospitals to limit services for SHA beneficiaries. 

The Business Daily has reported that the IMF has warned Kenya against cutting interest rates further, despite the recent drop in inflation and stability of the shilling. The IMF cautions that reducing rates could threaten price stability and make it harder to attract foreign investment, as Kenya’s interest rates are already close to global benchmarks. While the Kenyan government and Central Bank argue for lower rates to boost economic growth and reduce non-performing loans, the IMF believes maintaining tighter monetary policy is necessary to protect the country’s financial stability in the long run.

Read Also: Treasury's Rain of Taxes & Mergers in Kenya's Banking Sector - News Round-Up

Kenya is focusing on green manufacturing to boost exports and job creation by tapping into its renewable energy resources and emerging technologies, Capital Business reports. The government has introduced policies to promote zero-carbon manufacturing, aiming for climate resilience and inclusive growth. This move supports local industries in adopting technological advancements like artificial intelligence. The initiative is part of Kenya's participation in the Africa Green Industrialization Initiative, which President Ruto launched at the 2023 UN Climate Change Conference. 

Also on Capital Business; Kenya's private sector activity showed improvement in October, with the Purchasing Managers' Index (PMI) rising to 50.4 from 49.7 in September, signaling growth in business activity. This boost was driven by higher sales and new orders, particularly in agriculture, construction, and wholesale & retail sectors. Despite this, manufacturing and services saw declines, highlighting mixed sectoral performance. Employment also saw a slight rise for the first time since July, as firms worked through backlogs. While input costs remained mild, slight increases in selling prices were noted. However, the Future Output Index remained low, indicating cautious optimism for future growth.

Read Also: Kenya's Financial Landscape: Data Sharing, Tax Reforms, and IMF Adjustments - News Round-Up‍

Turaco became Kenya’s first insurtech company to receive an underwriting license at a launch on Tuesday, November 5. The ceremony was graced by Principal Secretary for the Ministry of Cooperatives and MSMEs Susan Mang’eni. Turaco offers affordable microinsurance solutions designed to support underserved households and build financial resilience. 

Tanzania has introduced charges of $1 (Ksh129) per litre of exported milk, along with other fees from various regulatory bodies, making it difficult for neighbouring East African countries to compete in the Tanzanian market. At a recent East African Business Council meeting in Kigali, concerns were raised over Tanzania's new levies on milk imports from Rwanda, which traders claim make the trade unprofitable and violate the principles of the East African Community (EAC) Common Market as reported in The EastAfrican . Despite directives to remove quotas on key products, including dairy, the EAC Secretary-General admitted that some of these measures remain unenforced due to a lack of political will and insufficient communication between relevant ministries. This trade dispute has also extended to other regional countries, with Uganda facing similar challenges in exporting milk to Kenya.