Court-Supervised Auction Hits Businessman in KSh 356M Fraud Case
0
0
Businessman Honey Khatwani, who is battling fraud charges amounting to KSh 356 million, has suffered another setback after his Babadogo property was auctioned on August 21, 2025.
The auction was carried out under a directive by Senior Principal Magistrate Lucy Njora, issued on August 15, 2025, authorizing police from Parklands and Ruaraka stations to oversee the process. The order was limited to enforcing distress for rent and explicitly clarified that it should not be interpreted as an eviction or demolition.
Khatwani, who is currently facing charges related to KSh 356 million, had previously appeared before Milimani Senior Principal Magistrate Dolphina Alego on charges of theft by servant involving USD 2,786,806.05 (approximately KSh 356,711,174.40).
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. 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 KSh 200,000. 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 2nd August 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 20th August 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.
About The Author
