Textbook publishers crippled by Sh11bn state debt – KAM

1
Textbook publishers crippled by Sh11bn state debt – KAM
Textbook publishers crippled by Sh11bn state debt – KAM

Africa-Press – Kenya. A ballooning debt owed to text book publishers and printers, now standing at Sh11 billion has crippled their operations, according the Kenya Association of Manufacturers.

This, the manufacturers lobby group says has put the production of Grade 10 textbooks in limbo. The debt has accumulated since 2022 and is for the printing of grade 8 and 9 books.

KAM is now urging the government to prioritise funding for CBC textbook publishing and printing in the national budget ahead of the transition to senior school in January 2026.

Failure to do so puts the implementation of the CBC curriculum at risk, KAM says, as publishers and printers are unable to proceed with production in a move that also affects manufacturers and importers in the paper and paperboard sub-sector.

The successful implementation of the government’s initiative to supply learning materials to schools relies heavily on publishers and manufacturers within the printing sub-sector who ensure timely and efficient book production.

“It is therefore paramount for the government to urgently clear the pending bills to prevent a potential textbook supply crisis in January 2026 when schools reopen,” Kenya Association of Manufacturers CEO, Tobias Alando said.

According to KAM, the textbook production process requires a minimum of 60 days for printing and an additional 30 days for distribution hence issuing contracts on short notice disrupts cash flow, forcing both publishers and printers to rely on costly credit facilities.

“This debt has severely strained the financial operations of printers and manufacturers, posing a significant risk to the continued rollout of the CBC curriculum especially for Grade 10 learners expected to transition to senior school in January 2026,” Alando said.

In addition to prioritising funding for publishing and printing in the national budget, the manufacturing sector lobby group has also recommended the provision of Letters of Credit (LC) for all Kenya Institute of Curriculum Development (KICD) contracts, to ensure coverage for publishers and, subsequently, printers.

It has also called for the issuance of contracts promptly, with due consideration for the timelines required for printing and distribution.

Traditionally, all paper used for textbook printing is imported with printers bringing in raw materials, including paper, well in advance, often before the KICD awards publishing contracts.

In most cases, the imported and fully paid-for stock remains in warehouses for up to six months or longer, KAM notes, while awaiting KICD’s allocation of printing jobs to publishers and, subsequently, to printers causing unnecessary cash flow constraints.

“The standard credit period from suppliers is generally 90 days, starting from the Bill of Lading date. However, 45–60 days are consumed by shipping and customs clearance, leaving only about 30 days after the goods are cleared. During this period, a significant portion of the supplier’s credit period has already elapsed,” Alando explained.

The printing sub-sector plays a vital role in supporting Kenya’s education curriculum by producing textbooks and other learning materials, with government’s goal of supplying these materials implemented through KICD, which receives funding from the state and awards contracts to publishers to develope, print, and distribute approved textbooks for various grades.

Publishers, in turn, engage printers to produce the books, which are then handed back to the publishers for distribution to schools.

Over the past six years, in alignment with the Competency-Based Curriculum (CBC), publishers have distributed more than 200 million books, primarily to public schools across Kenya.

Contractual arrangements between KICD and publishers are tied to the successful delivery of books to schools.

This means that publishers can only receive full payment after confirming delivery, which delays payments to printers.

Consequently, printers must complete production and await payment until publishers have fulfilled their delivery obligations and received funds.

“This process often results in payment delays exceeding six months, well beyond the credit terms offered by international suppliers of printing materials. In some cases, due to logistical and operational challenges faced by publishers, printers have experienced payment delays of over a year,” Alando said.

To address these challenges, KAM proposes the establishment of a harmonised procurement framework to improve turnaround times for book delivery to schools and reduce cash flow constraints across the supply chain.

It has further urged that printing of school textbooks be granted VAT zero-rating to help ease cash flow pressures and lower the overall cost of books.

Kenya’s textbook printing industry comprises more than 10 major printers, with a combined capacity to produce over 250 million books annually.

Similarly, the exercise book and stationery segment includes over 10 manufacturers, capable of producing around 60,000 metric tonnes of products each year.

Meanwhile, the publishing industry in Kenya consists of over 106 registered publishers, who together account for more than 95 per cent of all publications in the country.

The paper and paper board sector is categorised into three main sub-sectors to promote value chain integration: paper manufacturers, paper converters and printers and allied industries.

Collectively, these sub-sectors represent an estimated investment of nearly Sh100 billion.

For More News And Analysis About Kenya Follow Africa-Press

LEAVE A REPLY

Please enter your comment!
Please enter your name here