Longhorn Publishers Faces Bigger Loss as Kenya Changes Its Education System

Longhorn Publishers, one of Kenya's well-known educational publishing companies, has reported a major increase in its financial losses following changes in the country's education system. The company recorded a net loss of KSh949.6 million for the financial year that ended in June 2026, compared with KSh261.4 million in the previous year.
This means the company's losses have almost quadrupled within one year, raising concerns about the challenges facing the publishing industry as schools move to a new curriculum.
One of the main reasons behind the loss is Kenya's transition from the traditional 8-4-4 education system to the Competency-Based Education (CBE) system. Under the old 8-4-4 system, learners spent eight years in primary school, four years in secondary school and another four years at university.
However, Kenya is gradually replacing this structure with a new approach that focuses more on learners' abilities, practical skills and individual talents.
Although the change is intended to improve education, it has created difficulties for companies that produce school textbooks. Longhorn Publishers had invested a significant amount of money in developing and printing books for the old curriculum. As schools move to the new system, demand for some of these older textbooks is declining.
According to the company's report, it made a provision of KSh518 million for investments in old curriculum-related books that may no longer have much commercial value. The company also recognised the removal of previously recorded deferred tax assets worth KSh262 million, which contributed further to its financial difficulties.
Despite the reported loss, there was some positive news. Longhorn's revenue increased by 21 per cent, rising from KSh672.1 million to KSh811 million. This suggests that the company was still able to grow its sales, even though the cost of adjusting to the new education system affected its overall financial results.
Looking ahead, Longhorn Publishers is expected to focus more on producing learning materials that meet the requirements of the new curriculum. The company also plans to strengthen its digital learning services through its LoHo Learning platform, diversify its products and reach more customers.
Management believes that completing the major curriculum changes could create room for improved sales in the coming years. It will also be important for the company to manage its costs, improve its cash flow and rebuild its financial position.
While the transition has been difficult, Longhorn's next steps will determine how successfully it can adapt to Kenya's changing education sector.