Nairobi: Businessman in KSh 356m Fraud Case Faces Property Auction After Court Order
- A Nairobi businessman accused in a KSh 356 million fraud case saw his Babadogo property auctioned on court orders
- Senior Principal Magistrate Lucy Njora directed police to supervise the auction after distress for rent
- The accused had also sought to travel abroad for business, but the High Court rejected his application
TUKO.co.ke journalist Harry Ivan Mboto has over three years of experience reporting on politics and current affairs in Kenya
The case of a Nairobi businessman accused of fraud took a fresh turn after his Babadogo property was auctioned on Thursday, August 21, following a court order.
Source: UGC
According to the order seen by TUKO.co.ke, Senior Principal Magistrate Lucy Njora instructed the OCS Parklands Police Station and Ruaraka Police Station to supervise the auction.
“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,” the directive read.
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Honey Khatwani, a director at OKI General Trading Limited, is already facing charges linked to KSh 356 million.
He appeared before Milimani Senior Principal Magistrate Dolphina Alego on charges of theft by servant involving USD 2,786,806.05 (about KSh 356,711,174).
How was Khatwani involved in alleged fraud?
According to prosecutors, the funds came into his possession between January 2020 and June 2024 by virtue of his position at the company.
Through his lawyer Kennedy Echesa, Khatwani pleaded with the court for lenient bail terms.
“Your honour, the accused is innocent until proven guilty. We respectfully request that he be released on favourable bond terms,” Echesa said.
He told the court that Khatwani resides in Kenya with his wife and children and runs businesses that employ more than 50 people.
The prosecution, represented by Victor Awiti, did not oppose bail but urged for strict terms.
“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 stated, stressing the gravity of the alleged offence and the large sum of money involved.
Later, on 2 August, Khatwani applied to travel to India for 20 days, promising to return his passport immediately after the trip.
His lawyer told the court that Khatwani had complied fully with all bond conditions.
“He is a businessman whose livelihood depends on proceeds from his ventures. He is not a flight risk and is a first-time offender,” Echesa argued.
However, on August 20, the High Court declined the request. Justice Mungai said the matter could not be entertained during recess.
Did court grant Khatwani bond?
On August 2, Khatwani applied to travel to India for 20 days, pledging to surrender his passport upon return.
His lawyer insisted the trip was for essential business and that Khatwani had fully complied with bond conditions.
However, the High Court declined the request on August 20, with Justice Mungai ruling that the matter could not be heard during court recess.
The judge directed that the application be served to the Director of Public Prosecutions, with mention set after recess.
Source: Original
Did Khatwani steal from his own company?
TUKO.co.ke previously reported that the businessman was charged with defrauding his own company between 2020 and 2024.
He reportedly used his position as the director to misappropriate company funds over several years.
The accused was arrested on June 19 and later released on a police bond of KSh 200,000, with prosecutors describing the case as serious due to the large sums involved.
Source: TUKO.co.ke
