KLB seeks Parliament’s help to recover Sh251 million in unpaid debts

The Kenya Literature Bureau (KLB) has appealed to Parliament to help it recover more than Sh251 million in unpaid debts, saying the long-outstanding bills are affecting its operations and financial stability. Appearing before the National Assembly Public Investments Committee on Governance and Education, the bureau said efforts to collect the money owed by various institutions had faced challenges despite using available administrative channels. KLB Managing Director George Okeyo said the bureau had done everything within its reach to recover the money but faced difficulties, especially when dealing with fellow government institutions that owe it funds. “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 MPs, adding that the bureau had considered writing off some of the outstanding debts. The committee was reviewing Auditor General reports on KLB’s financial statements covering the period between the 2018/19 and 2024/25 financial years when the issue of unpaid debts came up. According to Auditor General Nancy Gathungu, KLB’s accounts show trade and other receivables amounting to Sh1.05 billion. Out of this amount, Sh251.5 million has remained unpaid for more than 90 days, raising concerns over the recovery of the money. Luanda MP Dick Maungu, who chairs the committee, criticised the bureau over what legislators termed as inadequate efforts to recover the outstanding funds. Maungu said recovering even part of the money would help ease pressure on the institution and support its operations. “If you recover even a fraction of these debts, you will be able to pay salaries for some of your staff,” Maungu said. He urged KLB management to focus on recovering the debts instead of writing them off. The committee also questioned why some of the debts had remained unresolved since 2015. Central Imenti MP Moses Kirima faulted KLB for relying on statutory time limits as a reason for considering writing off some debts, saying legal measures could still be used to pursue 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,” Kirima said. Maungu warned against the increasing practice by government institutions of writing off debts without exhausting recovery measures. He directed the committee secretariat to summon the Council of Governors to explain outstanding debts owed by county governments to state agencies, including KLB. He added that the Cabinet Secretary for the National Treasury would also be questioned over delayed payments affecting government institutions. The committee further questioned KLB’s proposal to write off a Sh921,000 debt owed by Jomo Kenyatta University of Agriculture and Technology, saying another public institution should not be considered unable to pay before all recovery options are exhausted. Okeyo told legislators that KLB had strengthened its debt collection process by creating a dedicated credit control function to ensure all sales are followed up on until payment is received. Assistant Finance Manager Kenneth Adongo said delayed payments by government institutions remain among the biggest challenges facing the bureau. He told the committee that the Kenya Institute of Curriculum Development owes KLB more than Sh1.3 billion, affecting the bureau’s ability to pay suppliers and sustain its operations. Adongo also pointed to frequent curriculum changes as another challenge, saying they leave booksellers with unsold textbooks worth millions of shillings. Legislators, however, asked KLB officials to provide evidence and documents to support the explanations given before the committee. During the same sitting, the committee also examined the accounts of Mosoriot Teachers College, where the Auditor General raised concerns over Sh991,744 paid as subscription fees to the Kenya Teachers College Sports Association. The audit found that the association does not have a legal framework recognised under public finance laws, making the payment irregular. Committee members acknowledged the importance of professional and sporting associations but called on the Ministry of Education to create a suitable legal framework to regularise such organisations and prevent similar audit concerns in future. The committee also considered audit issues involving Chepsirei Technical and Vocational College, Kapcherop Technical and Vocational College and Moiben Technical and Vocational College as it continued reviewing financial management in public institutions.