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Parliament presses KLB to recover Sh251 million in long-overdue debts

According to Auditor-General Nancy Gathungu, KLB's financial records show trade and other receivables amounting to Sh1.05 billion. Of this amount, Sh251.5 million has remained unpaid for more than 90 days, rais...

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Parliament presses KLB to recover Sh251 million in long-overdue debts

The Kenya Literature Bureau (KLB) has appealed to Parliament for support in recovering more than Sh251 million in long-outstanding debts, saying delayed payments by government institutions are straining its finances and making it difficult to sustain operations.

The bureau's financial challenges came under scrutiny on Tuesday when the National Assembly's Public Investments Committee on Governance and Education examined Auditor-General reports on KLB's financial statements covering the period between the 2018/19 and 2024/25 financial years.

According to Auditor-General Nancy Gathungu, KLB's financial records show trade and other receivables amounting to Sh1.05 billion. Of this amount, Sh251.5 million has remained unpaid for more than 90 days, raising concerns over whether the debts can be recovered.

The committee questioned the bureau's efforts to collect the outstanding funds, with members saying recovering even part of the money would ease the institution's financial burden.

Committee chairperson  Luanda MP Dick Maungu said KLB needed to strengthen its recovery measures instead of relying on debt write-offs.

"If you recover even a fraction of these debts, you will be able to pay salaries for some of your staff," Mr Maungu said, urging the bureau to pursue debtors more aggressively.

KLB Managing Director George Okeyo defended the institution's efforts, saying the bureau had exhausted all available administrative options but faced difficulties recovering money owed by fellow government agencies.

"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," Mr Okeyo told the committee.

Lawmakers also questioned why some debts dating back to 2015 had remained unresolved.

Central Imenti MP Moses Kirima dismissed KLB's explanation that some debts could not be pursued because of statutory time limits, saying courts have the power to extend deadlines where necessary.

"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," Mr Kirima said.

Maungu warned that Parliament would closely monitor the bureau's progress and criticised what he described as a growing trend of government institutions writing off debts instead of pursuing payment.

He directed the committee secretariat to summon the Council of Governors to explain debts owed by county governments to state agencies, including KLB. The committee also plans to question the Cabinet Secretary for the National Treasury over delayed payments to government institutions.

MPs further objected to KLB's proposal to write off a Sh921,000 debt owed by Jomo Kenyatta University of Agriculture and Technology (JKUAT), insisting the bureau should exhaust all recovery options before declaring the amount irrecoverable.

Okeyo assured lawmakers that KLB had strengthened its debt recovery systems by establishing a dedicated credit control function to monitor outstanding payments.

Assistant Finance Manager Kenneth Adongo told the committee that delayed payments by government institutions remained one of the bureau's biggest challenges. He revealed that the Kenya Institute of Curriculum Development (KICD) owes KLB more than Sh1.3 billion, making it difficult for the bureau to pay suppliers and maintain normal operations.

Adongo also cited frequent curriculum changes, saying they often leave booksellers holding unsold textbooks worth millions of shillings, making debt recovery even more difficult.

The committee urged KLB officials to provide documentary evidence to support their explanations.

During the same sitting, lawmakers also reviewed the accounts of Mosoriot Teachers College after the Auditor-General questioned Sh991,744 paid as subscription fees to the Kenya Teachers College Sports Association. The audit found the association lacks a legal framework recognised under public finance laws, making the expenditure irregular.

Committee members called on the Ministry of Education to establish a proper legal framework for professional and sporting associations to prevent similar audit queries in future. The committee also examined audit issues involving Chepsirei Technical and Vocational College, Kapcherop Technical and Vocational College, and Moiben Technical and Vocational College as it continued its review of financial management in public institutions.

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