Honey Khatwani fraud case
The trial of former Oki Company director Honey Khatwani took a dramatic twist at the Milimani Law Courts as witnesses detailed how millions of shillings were allegedly siphoned from the firm into his personal and family accounts.
Funds Diverted to Personal Accounts
Testifying before Senior Principal Magistrate Ben Mark Ekhubi, key witness Sameer Kewal Ramani claimed that company funds were routinely diverted to Khatwani’s Ecobank accounts in both Kenyan shillings and US dollars. According to Ramani, receipts of these transactions were forwarded directly to Khatwani via WhatsApp.
The witness further revealed that even client cheques issued to Oki Company were deposited into Khatwani’s personal accounts. He insisted that the irregularities were captured in a comprehensive audit report, adding:
“So many cheques are there from the client’s bank, which have gone to his personal accounts.”
Money Allegedly Sent to Wife’s M-Pesa
The court also heard that part of the diverted funds was channeled to Khatwani’s wife via her M-Pesa account. Although the witness admitted he could not access her M-Pesa statements, he emphasized that the audit files contained evidence of the transactions.
Manipulated Reports and Family Control
Employees were said to regularly share daily operational and financial reports with Khatwani through WhatsApp. However, the reports were allegedly altered by the director before being circulated further.
When asked why the discrepancies went unreported, the witness explained that most senior officials were Khatwani’s brothers, making it impossible for employees to raise concerns.
Unlawful Employment Practices
Another witness, who joined Oki Company in July 2023, told the court that he worked without a valid work permit, alleging that Khatwani ignored repeated requests to process one. He also revealed that workers were paid in cash, without payslips or bank deposits, and that he signed a contract but was never given a copy.
The witness alleged that Khatwani used verbal threats to coerce employees, leaving them in fear of dismissal if they resisted.
Misrepresentation to Clients
The prosecution further accused Khatwani of misleading clients by presenting his own company and Oki Company as one entity, creating confusion among customers who later lodged complaints.
Sh356 Million Fraud Scheme
According to audit evidence, over Sh356 million was allegedly siphoned from Oki Company through falsified records, diversion of client payments, and manipulation of company accounts.
Case Mention
The case is set for mention on September 29, 2025, when the prosecution will continue presenting witnesses against Khatwani.