TRADING TERMS

Kenya Literature Bureau subscribes to the bookshop distribution system. KLB has been instrumental in the developing of the bookshop distribution system. In dealing with the bookshops KLB, has set up a trading terms that mutually govern the relationship between us and bookshops. We are also members of the Kenya Publishers Association and in support of the Kenya Booksellers Association; KLB has set up trading terms that will protect the interest of all stakeholders in the publishing industry.

RECRUITMENT OF CUSTOMERS
To trade with KLB, the following conditions will apply:

  • KLB shall sell books only to registered booksellers. The customer/bookshop must be registered as a member of the Kenya Booksellers Association.
  • The customer/bookseller must be a registered business with a physical address.
  • The bookshop/customer must provide a current trading licence domiciled in the registered physical address.
  • The name of the director/proprietor of the bookshop and copy of his identity card must accompany the application form.
  • Finally the customer must fill the KLB customer recruitment form and seek endorsement from the area Educational representative. KLB has 9 sales areas and the customer is encouraged to know their area sales representative.

Trade discount
KLB gives a market/target driven trade discount to all bookseller. Our trade discount is applied equally to all our customers. Kenya Literature Bureau does not negotiate the trade discount with customers but rather leaves the discount to market forces.

Credit Terms
KLB has categorized all customers’ accounts into 4 major categories depending on their mode of payment. These categories are:

  • Cash customers
  • Current cheque customers
  • Post dated cheque customers
  • Credit customers

a) Cash Customers
All customers who buy their goods from KLB and pay cash before picking their items are categorized as cash customers. The customer must pay in full for all items purchased and leaves KLB with his goods and invoice.

b) Current Cheque customers

These category of customers, pay for their goods through the use of current cheques. The cheque must be valid and drawn on a registered company (bookshop). Kenya Literature will de register any current chouse customer whose cheques shall bounce.

c) Post-Dated cheque customers

These are customers who pay for their goods by a 30 days post-dated cheque. These customers enjoy 30 days credit. The conditions that apply for these type of accounts are:

  • Each order shall be accompanied by a cheque leaf.
  • The cheque shall be dated 30 days from the date of invoice.
  • The invoice must bear the number of the accompanying cheque.
  • Any cheques that will bounce will lead to the suspension of the account from the category. Such accounts shall automatically revert to the cash category.

Credit Customer

These category of customers hold credit accounts and they enjoy a credit period of 60 days. They pay for their goods when the accounts fall due. The discipline of running the account shall be born by the booksellers. KLB shall punitively revert customers who fail to meet the standards required of customers in this category.

LIMITS ON ACCOUNTS

KLB has no limits to restrict the purchases of any cash customer. The magnitude of their order can only be limited by availability of stock. Cheque, post dated and credit customers account are limited by the level of risk exposure and this directly controlled by KLB.

APPLICATION FOR CREDIT FACILITIES

KLB would like to encourage it’s customers to pay for their books by cheques and other non-cash forms. The risk of carrying and holding money is inherent and KLB would like to protect both themselves and the customer.
Application for credit can be done through the educational sales representative who serves the area you come from. The application takes time as credit appraisal is done only once a year. The customer could also place his request directly through the customer service or marketing manager.

To be considered for credit the booksellers will be required to:

  • Give evidence of having traded with KLB for over one year in any of the categories i.e. cash current cheque or post dated status.
  • Customer must produce an introduction letter from a bank with evidence of holding current account in the companies name.
  • A duly signed customer recruitment form.
  • The customers desired credit limit as provided in the customer recruitment form.

The application will be officially appraised and the approval sought from the Managing Director. The credit conditions as set by the Bureau shall apply for all accounts/credit customers. When a customer/bookseller will be granted credit status, KLB shall communicate officially to the customer when his application for credit is approved.