State publisher–Kenya Literature Bureau is struggling to pay suppliers due to cashflow issues from delayed payments amounting to Sh1.05 billion mostly by government institutions.
Auditor-General Nancy Gathungu’s report on KLB’s accounts show the bureau is owed Sh1.05 billion in trade and other receivables, with Sh251.5 million having remained unpaid for more than 90 days.
The state-owned publisher told Parliament that efforts to recover the money from government agencies have largely failed, exposing a growing cash flow crisis within the public sector where institutions are unable to collect payments from fellow government entities.
Appearing before the National Assembly’s Public Investments Committee on Governance and Education, KLB has warned delayed payments have weakened its finances, making it difficult to pay suppliers and sustain normal operations.
The warning came as MPs demanded tougher action against defaulting public institutions instead of allowing debts to accumulate for years before being written off.
Public Investments Committee Chairperson Dick Maungu said recovering even part of the outstanding amounts would significantly ease the bureau’s financial pressures.
“If you recover even a fraction of these debts, you will be able to pay salaries for some of your staff. You can try to be aggressive in recovery measures rather than seek debt write-offs,” said Maungu who is also the Luanda MP.
KLB managing director George Okeyo said the bureau’s biggest challenge is collecting payments from fellow government institutions, noting that administrative efforts over several years have yielded little success.
“If we are allowed by the government to take drastic action against fellow government institutions, we would do so. We have used all the avenues available to KLB over the years, but we have failed to recover these debts,” Okeyo told the committee.
The committee questioned why some debts dating back to 2015 remain unresolved, with MPs dismissing suggestions that statutory time limits should automatically prevent recovery.
Central Imenti MP Moses Kirima said KLB had not exhausted available legal options, arguing that courts have discretion to extend limitation periods where circumstances justify recovery.
“It shows a lack of seriousness. If you have a legal adviser, they should know that courts can extend time to enable recovery where necessary,” he said.
The hearing exposed the wider challenge facing many state corporations, where delayed payments by government agencies create a chain reaction of cash flow problems, leaving suppliers unpaid and forcing institutions to seek Treasury support despite being owed substantial sums.
KLB assistant finance manager, Kenneth Adongo, identified delayed payments by government agencies as one of the bureau’s biggest operational risks.
He disclosed that the Kenya Institute of Curriculum Development (KICD) alone owes KLB more than Sh1.3 billion, making it difficult for the publisher to settle its own suppliers and maintain smooth operations.
The bureau also blamed frequent curriculum changes for worsening its financial position, saying booksellers are often left holding obsolete textbooks worth millions of shillings, complicating debt recovery.
Concerned by the growing culture of non-payment across the public sector, the committee directed its secretariat to summon the Council of Governors to explain outstanding debts owed by county governments to state agencies, including KLB.
MPs also resolved to question the National Treasury CS over delays in settling payments between government institutions.
The committee further rejected KLB’s proposal to write-off a Sh921,000 debt owed by Jomo Kenyatta University of Agriculture and Technology, insisting that every available recovery avenue must first be exhausted.
KLB said it has since strengthened its credit management systems by establishing a dedicated credit control function to improve debt follow-up and reduce future defaults.
