Red tape killing us, say school-book suppliers

What you need to know:

  • Last week, headteachers claimed that suppliers, including publishers, had suspended their services to schools on account of unpaid debts.
  • “We are owed Sh900 million which has accrued since January this year and this is hurting our businesses,” association chairman Lawrence Njagi said at a media briefing in Nairobi on Monday.
  • As the disbursement headache weighs in, publishers are also reeling from the effects of value added tax, which they claim has reduced the purchasing power of schools due to the high cost of books.

The Kenya Publishers Association wants the purchase of textbooks devolved to avoid delayed payments to its members.

The association blames delayed payment on the national government.

It said its members were owed almost Sh1 billion by schools.

“We are owed Sh900 million, which has accrued since January this year, and this is hurting our businesses,” association chairman Lawrence Njagi said at a media briefing in Nairobi on Monday.

BIGGEST CLIENT

With the government as their biggest client, booksellers were at its mercy and have to keep on supplying the reading materials to schools on credit despite the mounting debt, Mr Njagi said.

Last week, headteachers claimed that suppliers, including publishers, had suspended their services to schools on account of unpaid debts.

The Treasury released funds to schools early in the month, but headteachers claim it was part of the second-term allocation, and used the money to settle debts to suppliers incurred before August.

According to the Kenya Secondary School Heads Association, the institutions have so far only received last term’s remaining allocation of 15 per cent and still need 20 per cent to cover September to November.

REELING FROM VAT EFFECTS

As the disbursement headache weighs in, publishers are also reeling from the effects of value added tax, which they claim has reduced the purchasing power of schools due to the high cost of books.

“Most schools have reduced their purchase orders as a cost-cutting measure to beat the high cost of books,” Mr Njagi said.

Previously zero-rated, books started attracting a 16 per cent tax upon the implementation of the VAT Act 2013 last year.