Former Oki Director Honey Khatwani Accused of Fraud, Employee Intimidation, and Sh356 Million Scandal

Last Updated on September 24, 2025 by courtnews reporter

Honey Khatwani fraud

The fraud case against former Oki director Honey Khatwani has taken a dramatic twist after explosive testimonies linked him to a Sh356 million corporate fraud scheme and a pattern of intimidation meant to silence employees who discovered irregularities.

Khatwani, who is currently facing multiple counts of fraud, is accused of siphoning company funds through fake invoices, black-market dealings, and illegal money transfers, which prosecutors say crippled Oki’s operations. The money, according to court records, was allegedly funneled into new businesses that he later established to conceal the fraud.

Witness Testimonies: Threats and Intimidation

At the hearing before Chief Magistrate Dolphina Alego, two former Oki employees provided detailed accounts of how Khatwani allegedly used threats and intimidation to prevent staff from exposing financial mismanagement.

Death Threats and Passport Confiscation

Jatin Aswani, who worked at Oki during Khatwani’s directorship, testified that he uncovered irregularities in sales and accounts. When he attempted to raise concerns, he claimed Khatwani threatened him with death and confiscated his passport, effectively restricting his movement.

Aswani added that despite reporting the threats to the police, no action was taken, leaving him vulnerable and fearful for his safety.

“My life was at risk. He ignored my pleas and warned me not to expose the fraud. I had no option but to seek outside help,” Aswani told the court.

Intimidation of Staff Between 2020 and 2024

Another witness, Karan Badlani, who served as a sales executive and accountant, testified that between 2020 and 2024, Khatwani subjected employees to constant intimidation, including confiscating passports and forcing staff to apply for work permits under duress.

Badlani said the threats and hostile working environment eventually forced him to resign from the company.

Alleged Misuse of Funds

The witnesses further alleged that the siphoned funds were not reinvested into Oki but instead squandered on gambling activities, which worsened the company’s financial collapse.

Prosecutors told the court that after leaving Oki, Khatwani established a new company called Galaxy, into which he allegedly transferred large sums of money. They also claim he created a pseudo-company to channel additional funds, continuing the fraudulent activities under different names.

Prosecution’s Case Against Khatwani

The prosecution argued that the witnesses’ testimonies painted a consistent picture of a director who abused his position of power, defrauded the company of millions, and used fear tactics to maintain control over employees.

Chief Magistrate Alego directed that the hearing continue, with more witnesses expected to provide supporting evidence.

The case highlights growing concerns over corporate governance, accountability, and employee protection in Kenya, especially where whistleblowers risk retaliation when exposing corruption.

Broader Implications

Legal experts say the case underscores the urgent need for stronger frameworks to protect employees from retaliation and to hold directors personally accountable for financial misconduct.

Corporate fraud cases such as this have raised questions about regulatory oversight, with critics pointing to gaps in Kenya’s legal and corporate governance systems that allow directors to exploit loopholes.

If found guilty, Honey Khatwani could face hefty financial penalties, imprisonment, and asset recovery proceedings to compensate Oki for the massive losses incurred.