Honey Khatwani, Indian trader in Sh356million theft charge used the loot to start own company, court told

A Nairobi-based Indian businessman Honey Khatwani who has since been charged with stealing Sh356 million from a company where he worked as a director used the cash to start and stabilize his own business, a Milimani court heard yesterday.

Khatwani was charged in June this year with stealing Sh356million from Oki General Trading Limited, where he worked as a director and opened his own firm, Galaxy Middle East Limited.

While testifying in the matter before Milimani Senior Principal Magistrate Dolphina Alego yesterday, the complainant, Deepak Rajoria told the court that Khatwani misappropriated company funds and used the proceeds to build his own company.

Khatwani had served as a director of the Baba Dogo-based company until he formally resigned on July 15, 2024.

According to the charge sheet, Khatwani, a director at OKI General Trading Limited, was accused of stealing the money on diverse dates between January 1, 2020, and June 30, 2024, at Baba Dogo in Nairobi County.

He is facing charges of theft by servant involving USD 2,786,806.05 (approximately Sh356,711,174.40).

Rajoria said before his resignation, Khatwani had transferred all his shares at the company.

Rajoria was an employee of the company’s main outlet in Dubai until December 2024, when he was moved to Kenya and appointed director in January.

Upon his appointment as director, he commissioned a forensic audit of the company’s financial operations and accounts after he found funds were missing.

“The audit unearthed massive misappropriation, including fake invoices and company funds being deposited into the accused personal account,” Rajoria said.

He told the court that Khatwani, using his position then as company director, had instructed other employees to make deposits not to the company accounts but to his personal account.

“He was receiving company funds in his own account. From there, the funds were sometimes sent to an M-Pesa number belonging to his wife,” Rajoria said.

The Rajoria told the court that Khatwani used the funds to start his own company called Galaxy Middle East Limited, which he co-founded with another former employee of Oki General Trading Limited.

The company was started sometime in 2022 when Khatwani was still working as a director at Oki General Trading Limited.

“As a director, he had access to company money and all documents of authority from which he made fake invoices. We found that money was being fraudulently transferred to his own personal account, Galaxy account and M-Pesa account,” Rajoria said.

Rajoria is the first witness to testify in the matter.

Khatwani was on June 23, 2025 charged with stealing Sh356million from Oki General Trading Limited, where he worked as a director.

Khatwani is an Indian national who lives in Kenya with his family and worked as a director at Oki General Trading Limited in Baba Dogo within Ruaraka constituency.

The charge sheet shows that on diverse dates between January 2020 and June 2024, being a director at Oki General Trading Limited, he stole Sh356,711,174.4, the property of the firm, which came into his possession by virtue of his employment.

He pleaded not guilty to the theft and was released on bond with tough conditions, including depositing his passport in court.

Further hearing will proceed on September 26, 2025.

And on August 21, 2025 Khatwani witnessed his Babadogo property being auctioned following a court order issued on August 15, 2025.

According to the court order, Senior Principal Magistrate Lucy Njora issued the directive after distress for rent costs.

“An order be and is hereby issued to the OCS Parklands Police Station and Ruaraka Police Station to supervise execution of the distress for rent. The costs of this application be in the cause. This order should not be interpreted or construed in any manner whatsoever to mean an eviction or demolition order. Given under my hand and seal of the Honourable Court this 15th August 2025,” read the order.

Prosecutors said the funds came into his possession by virtue of his position as director.

Through his lawyer Kennedy Echesa, Khatwani pleaded with the court to grant him lenient bail terms, arguing that he is not a flight risk and has deep ties to Kenya.

“Your Honour, the accused is innocent until proven guilty. We respectfully request that he be released on favorable bond terms,” said Echesa, noting that Khatwani resides in Kenya with his wife and children and runs businesses employing over 50 people.

The prosecution, represented by Victor Awiti, did not oppose bail but urged the court to consider the gravity of the alleged offence and the substantial amount of money involved.

He requested that bail terms be commensurate with the charges and that conditions be imposed to ensure the accused attends trial.

“The accused was arrested on June 19 and released on a police bond of Sh200,000. He is currently in possession of his passport. We are not opposed to bail, but we ask that strict terms be imposed,” Awiti submitted.

Later, Khatwani sought to leave the country on August 2, 2025 for 20 days, pledging to return his passport to the court immediately upon his return.

His lawyer stated that Khatwani had fully complied with all bond and bail terms to date, adding that he is a businessman whose livelihood depends on proceeds from his ventures.

Echesa emphasized that he needed to travel to India for essential and official business engagements, stressing that Khatwani is not a flight risk and is a first-time offender.

However, on August 20, 2025, the High Court declined the application citing court recess.

Justice Mungai ruled that the application could not be entertained at this stage and directed Khatwani to serve the Director of Public Prosecutions (DPP) with the application.

The matter will be mentioned after the court resumes session. “I will not grant the orders sought at the moment because the court is in recess,” Justice Mungai stated.