KLB pursues Sh251m debt as counties, universities and Catholic dioceses top defaulters

The Kenya Literature Bureau (KLB) has asked Parliament to intervene in the recovery of Sh251 million in long-standing debts owed by county governments, public universities, Catholic dioceses and other institutions, warning that the unpaid bills are straining its operations.

Appearing before the National Assembly Public Investments Committee on Governance and Education KLB Managing Director George Okeyo said the State publisher has stepped up debt recovery efforts but continues to grapple with huge outstanding balances, some dating back more than 90 days.

“We need your assistance in recovering these outstanding receivables, since it is affecting our cash flow and straining our operations” he told the committee chaired by Luanda MP Dick Maungu,

Documents tabled before the committee show the bureau is owed Sh251.49 million, although it has recovered Sh98.3 million during the 2025/26 financial year, leaving an outstanding balance of Sh153.18 million as at June 30, 2026.

Mr Okeyo told MPs that while a significant portion of the debts is under agreed repayment plans, the bureau has been forced to pursue demand letters, debt collectors and court action against defaulting clients to recover the outstanding amounts.

According to the documents, Busia County tops the list of county government debtors, owing the bureau Sh8.13 million, followed by Nandi County at Sh3.8 million, Vihiga County at Sh2.51 million and Homa Bay County at Sh2.3 million.

Elgeyo Marakwet County owes Sh492,594 while Turkana County has an outstanding balance of Sh330,162.

Among national government institutions, the Kenya Universities and Colleges Central Placement Service (KUCCPS) owes the bureau Sh5.2 million.

Jomo Kenyatta University of Agriculture and Technology owes Sh921,321, the University of Nairobi Enterprises and Services Limited has an outstanding balance of Sh448,000, while Egerton University Bookshop owes Sh23,926.

The list of debtors also includes several Catholic dioceses, with the Catholic Diocese of Meru owing Sh583,747, the Catholic Diocese of Isiolo Sh535,455 and the Catholic Diocese of Mombasa Sh278,308.

The Postal Corporation of Kenya owes the bureau Sh414,934, while author Zipporah Kittony had an outstanding balance of Sh411,169 as at June 30, 2026.

The bureau told the committee that of the Sh251.49 million in debts outstanding for more than 90 days, Sh143.5 million falls within existing repayment agreements, while Sh107.99 million relates to accounts where recovery measures have been initiated.

“Because KLB is barred from suing other government entities under existing government policy, we have sought the intervention of the Chief of Staff and Head of Public Service to recover debts owed by national and county government institutions,” said Mr Okeyo.

The KLB has also written to the Controller of Budget requesting assistance in recovering debts from county governments.

“The Controller of Budget subsequently wrote to the affected counties urging them to settle the outstanding amounts, with follow-up efforts still ongoing,” he told MPs.

To improve collections, KLB has entered into repayment agreements with several debtors, including the Kenya Institute of Management and Honest Bookshop, both of which are making monthly payments.

The bureau has also engaged debt collection agencies to trace debtors and recover outstanding amounts, although some accounts remain difficult to recover and have been escalated for legal action.

Mr Okeyo noted that court cases have already yielded positive outcomes in some instances.

The KLB obtained a court award against Lisa Paperworks for Sh5.48 million, down from an original debt of Sh14 million, with the company required to continue making monthly payments.

Court-sanctioned consent agreements have also been secured against Honest Bookshop over Sh588,747 and the Kenya Institute of Management for Sh1.46 million, with both debtors implementing agreed payment plans.

Other recovery cases remain pending in court, including claims against Jonszavike Bookshop amounting to Sh7.35 million, Easton Logistics for Sh1.92 million and the Kenya Association for Certified Training Providers for Industry (KACET), which owes Sh2.25 million.

The bureau has also proposed writing off Sh21.37 million in debts considered irrecoverable after exhausting all available recovery mechanisms.

Documents presented to the committee show KLB has sought approval from the National Treasury to write off the debts in accordance with the Public Finance Management Act and its regulations.

A response from the Treasury is still pending, even as the bureau intends to make provisions for the debts in its 2025/26 financial statements.