Kenya Literature Bureau (KLB) has posted a net profit after tax of KSh 12.2Mn for the year ended June 30, 2025, a 90.7% collapse from KSh 131.0Mn the prior year, as gross turnover fell 46.4% to KSh 1.828Bn, reversing three consecutive years of revenue growth that had peaked at KSh 3.410Bn in FY2023/24.
- •The state publisher, wholly owned by the Government of Kenya under the Ministry of Education, saw gross profit margin expand 11.6 percentage points to 45.7%, as cost of sales fell 55.8% to KSh 992.9Mn, a steeper decline than revenue.
- •The margin improvement was due to higher-margin open-market and collaboration sales, with commercial printing for KICD, KNEC, and KUCCPS contributing KSh 67.7Mn, partly offsetting the shortfall in government orders.
The primary drag was a 1.026Bn contract with the Kenya Institute of Curriculum Development to print and distribute Grade 1 to 4 mathematics learners books and teachers guides across four sub-contracts, with an agreed delivery deadline of May 6, 2025.
Audit inspection of Murang'a, Kirinyaga, Machakos, and Kajiado counties in July 2025 found no books had been delivered to schools, except at Murang'a School for the Hearing Impaired. With two months remaining in the academic year, the Auditor-General warned the delay would affect smooth curriculum implementation. Management attributed the spillover to delays by KICD in confirming final distribution quantities, pushing an estimated KSh 34.1Mn in associated costs into FY2025/26.
Costs Held, Liquidity Strengthened
- •Operating expenses fell 17.4% to KSh 864.8Mn, the lowest in three years, with selling and distribution costs dropping 34.5% to KSh 365.7Mn. Administration costs held at KSh 499.1Mn.
- •Finance income rose 5.7% to KSh 41.2Mn, supported by short-term deposits earning 11.85% and treasury bills at 8.77%. Cash and cash equivalents improved to KSh 320.7Mn from KSh 241.3Mn. The Bureau carried no borrowings across all five years reviewed, maintaining zero gearing throughout.
- •Profit before tax, which had grown from KSh 88.4Mn in FY2020/21 to a five-year peak of KSh 168.7Mn in FY2022/23 before moderating to KSh 164.5Mn in FY2023/24, fell sharply to KSh 30.0Mn, the weakest result in the review period.
- •Shareholders' funds nonetheless grew steadily across the five years, rising from KSh 4.275Bn in FY2020/21 to KSh 4.480Bn in FY2024/25, reflecting accumulated retained earnings despite the dividend erosion.
| Metric | FY2024/25 (Kshs) | FY2023/24 (Kshs) | YoY Change |
|---|---|---|---|
| Gross Turnover | 1.828Bn | 3.410Bn | ▼-46.4% |
| Gross Profit | 835.2Mn | 1.162Bn | ▼-28.2% |
| Gross Profit Margin | 45.7% | 34.1% | ▲+11.6pp |
| Total Operating Expenses | 864.8Mn | 1.047Bn | ▼-17.4% |
| Net Profit Before Tax | 30.0Mn | 164.5Mn | ▼-81.8% |
| Net Profit After Tax | 12.2Mn | 131.0Mn | ▼-90.7% |
| Inventories | 2.771Bn | 2.194Bn | ▲+26.3% |
| Trade & Other Receivables | 1.049Bn | 2.339Bn | ▼-55.2% |
| Short-term Deposits | 304.2Mn | 217.4Mn | ▲+39.9% |
| Total Current Assets | 4.141Bn | 4.774Bn | ▼-13.3% |
| Total Assets | 5.910Bn | 6.600Bn | ▼-10.5% |
| Retained Earnings | 2.507Bn | 2.540Bn | ▼-1.3% |
| Dividend Declared | 1.2Mn | 13.1Mn | ▼-90.7% |
Audit Qualifications
The Auditor-General issued a qualified opinion, citing KSh 251.5Mn in receivables outstanding beyond 90 days. Nine prior-year audit issues remained unresolved and three board positions required by statute were vacant, placing management in breach of the Kenya Literature Bureau Act.
The Board proposed a dividend of KSh 1.2Mn, down 90.7% from KSh 13.1Mn, equivalent to 10% of after-tax profit. The proposed dividend has declined in four of the past five years, falling from KSh 18.9Mn in FY2022/23 to its current low.
