By Wahome Thuku
NAIROBI, KENYA: The judiciary has served Parliament with a detailed justification for the intended purchase of a Sh300 million fixed wing aircraft.
The report handed to the Budget and Appropriations Committee of Parliament gives a breakdown of financial benefits of buying a 14-seater Cessna 2008B Grand Caravan as opposed to hiring one for accessing remote areas.
The judiciary says it intends to own an aircraft to cut on the costs of hiring for flights to remote stations that are not accessible by road.
Further the judiciary intends to use the aircraft to generate revenue which would then subsidize the operational costs.
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“If purchased, the aircraft will be used as a tool to enhance service delivery and at the same time will be used as a source of revenue,” the report says.
The financial analysis estimates that in five years the judiciary would spend Sh228.3 million on the aircraft but generate Sh437.7 million making a profit of Sh209.5 million.
The expenditure would be on fuel, maintenance, administration costs, pilot salaries and other operational charges and taxes. It hopes to generate about $96,000 (about Sh8.1 million) per month in hiring out the aircraft.
Last week the committee chaired by Mbeere South MP Mutava Musyimi, asked Chief Registrar Gladys Shollei to furnish it with detailed information on the proposal.
The judiciary proposes to spend Sh24.1 billion of which Sh17.1 billion will be used for recurrent expenditure and Sh7 billion for development.
The MPs asked Ms Shollei to submit a brief on how the aircraft would benefit the judiciary in its vision of delivering justice to the people of Kenya. It on the basis of that brief that the committee will determine whether to approve or reject it.
The judiciary argues that the commercial viability of owning a plane is determined by the number of flying hours undertaken in a period of time, usually monthly.
“To economic sense such a plane should undertake a minimum of 50 hours per month. Given that the Judiciary will only utilize the plane for only about 10 hours a month, the plane will be available for an extended period every month,” their report says.
The judiciary intends to first work in conjunction with the Kenya Wildlife Service (KWS) in running the air services.
In this 2012/2013 financial year the judiciary has spent $6,134 (about half a million shillings) in hiring a Cessna aircraft from the KWS for a five-hour flight to Moyale.
The flight cost them $1000 (about Sh85,000) an hour exclusive of other navigation charges and taxes.
A nine-hour flight to Lodwar cost the judiciary $10,774 (Sh900,000) while a 12 hour flight to the same destination by a helicopter cost them $24,986 (about Sh2.1 million).
“Since this is a new venture for the Judiciary, and the institution does not have an established Airwing Department, we will get into a partnership with the Kenya Wildlife Services,”.
The reports adds, “The Kenya Wildlife Services has offered to initially second a Pilot, an aircraft attendant and the operations officers on an interim basis and carry out the initial maintenance as per the regulations,”
The initial arrangement with KWS is expected to take a year. The Judiciary will initially second staff from its transport department to KWS learn the day-to-day operation of the aircraft.
After one year from the day of the purchase of the Aircraft, the Judiciary will have its own Air wing/support.
“The idea is not to establish a fully fledged Airwing for the Judiciary as this is not our core business but to maintain a functional unit to ease transport,” the reports states,”
The judiciary says it would be able to pay back the capital investment in the five years.
“With the hiring out arrangement, the Judiciary will in five years have generated a return on the investment,” the report says.
