From digital to group loans and now the proposed lending towards payment of health insurance, the government is increasingly getting itself into a space where it has struggled to leave a mark. The draft Social Health Insurance (General) Regulations, 2024, which is supposed to usher in a new social health insurance system says the government intends to start issuing loans to people who cannot afford to pay for the insurance on time. The arrangement poses a compliance headache for families and the government hopes to come in with loans to help them pay for the cover. The State is also currently continuing with the issuance of the Hustler fund loans which started in November 2022. However, loan defaults have been above that of the banking sector and digital lenders, pointing to a potential mess in the long-term.

Source: Daily Nation February 06, 2024 21:06 UTC