KLB seeks Parliament’s support to recover KSh251 million in outstanding debts

The Kenya Literature Bureau (KLB) has appealed to Parliament for support in recovering more than Sh251 million in long-outstanding debts, warning that the unpaid bills are straining its operations and threatening its financial stability.

The appeal was made on Tuesday during a session of the National Assembly’s Public Investments Committee on Governance and Education, which was reviewing Auditor-General reports on KLB’s financial statements covering the period from the 2018/19 to the 2024/25 financial years.

Auditor-General Nancy Gathungu’s report detailed that KLB’s financial statements indicate trade and other receivables totalling Sh1.05 billion. Of this amount, Sh251.5 million has remained unpaid for more than 90 days, raising concerns about the recoverability of the debts and the accuracy of the bureau’s financial records.

Committee Chairperson and Luanda MP Dick Maungu criticised KLB’s debt recovery efforts, saying the bureau had not done enough to collect the outstanding amounts. He noted that recovering even part of the debt would ease the institution’s financial challenges, including meeting salary obligations.

“If you recover even a fraction of these debts, you will be able to pay salaries for some of your staff,” Maungu said, urging the bureau to intensify recovery efforts instead of seeking debt write-offs.

Responding to the concerns, KLB Managing Director George Okeyo said the bureau had exhausted all available administrative avenues but faced challenges recovering money owed by fellow government institutions.

“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.

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Lawmakers also questioned why some debts dating back to 2015 remain unresolved. Central Imenti MP Moses Kirima dismissed KLB’s reliance on statutory limitation periods to justify writing off debts, arguing that courts have the authority to extend such timelines where justified.

Maungu warned against what he described as a growing culture of government agencies writing off debts instead of aggressively pursuing recovery. He said Parliament would closely monitor KLB’s progress and directed the committee secretariat to summon the Council of Governors to explain outstanding debts owed by county governments to state agencies, including KLB.

The committee also announced plans to question the Cabinet Secretary for the National Treasury over delays in settling payments owed to government institutions.

Members further opposed KLB’s proposal to write off a Sh921,000 debt owed by Jomo Kenyatta University of Agriculture and Technology (JKUAT), insisting that all available recovery mechanisms should be exhausted before declaring the debt irrecoverable.

Okeyo assured the committee that KLB has strengthened its debt management systems by establishing a dedicated credit control unit to ensure all sales are monitored until payment is received.

The bureau also disclosed that the Kenya Institute of Curriculum Development (KICD) owes it more than Sh1.3 billion, a situation that has affected KLB’s ability to pay suppliers and sustain its operations.

KLB also cited frequent curriculum changes as another major challenge, saying the revisions often leave booksellers with unsold textbooks worth millions of shillings, making debt recovery even more difficult.

By Obegi Malack

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