Court Told How CEO Used Wife’s M-Pesa Account To Defraud Co-Owners Sh356 Million Amid Witness Death Threats

A Nairobi court has heard testimonies of how a former company director allegedly used his wife’s M-Pesa account and personal bank accounts to siphon Sh356 million from his employer while threatening witnesses who discovered the fraud.

Honey Khatwani, an Indian national who served as Managing Director of Oki Trading Company Limited (OTCL), is facing theft charges after an audit revealed the massive financial irregularities spanning four years from January 2020 to June 2024.

Appearing before Senior Principal Magistrate Dolphina Alego at Milimani Law Courts, two key witnesses painted a damning picture of systematic financial manipulation and workplace intimidation that allegedly crippled the trading company’s operations.

Sameer Kewal Ramani, who identified himself as Khatwani’s relative, delivered explosive testimony detailing how he was instructed to deposit company funds directly into the former director’s personal accounts.

Ramani told the court he regularly transferred money to Khatwani’s Ecobank account in both Kenyan shillings and US dollars, as well as his wife’s M-Pesa wallet.

“I would send Honey bank receipts via WhatsApp after depositing money in his personal accounts,” Ramani testified, revealing the casual nature of what prosecutors argue was a sophisticated theft operation.

The court heard that daily sales reports were shared through WhatsApp messaging, which Khatwani would allegedly manipulate to conceal financial discrepancies.

According to Ramani’s testimony, the former MD would receive clients’ cheques meant for OTCL directly into his personal accounts while creating fraudulent invoices to mask the extent of the theft.

The fraud allegedly extended beyond simple embezzlement.

Witnesses testified that while still serving as OTCL’s Managing Director, Khatwani established a competing enterprise called Galaxy Middle East Africa Limited. The court heard he would personally contact OTCL clients to redirect their business to his new company, effectively cannibalizing his employer’s customer base.

Jatin Aswani, another OTCL employee, provided disturbing testimony about the working conditions under Khatwani’s leadership.

Aswani told the court he uncovered irregularities in company sales that pointed directly to financial mismanagement, but his efforts to expose the fraud allegedly put his life at risk.

The witness testified that Khatwani issued death threats against him after he discovered the financial misconduct.

Adding to his predicament, Aswani claimed the former director confiscated his passport and ignored his pleas for its return, forcing him to seek police intervention, though no action was reportedly taken.

Former Sales Executive and Accountant Karan Badlani corroborated these accounts, telling the court that between 2020 and 2024, staff endured constant intimidation including passport confiscation and coercion regarding work permit applications.

The threats eventually compelled him to leave the company, he testified.

The testimonies revealed a pattern of employment irregularities that prosecutors argue facilitated the fraud.

Aswani disclosed he worked for OTCL since July 2023 without proper documentation despite repeated requests for work permit facilitation.

He told the court that Khatwani paid staff in cash rather than through formal banking arrangements, despite employee requests for proper payment systems.

When questioned about documentary evidence, Aswani explained that much of their communication occurred through phone calls rather than traceable emails, highlighting the informal and potentially deliberately obscured nature of workplace interactions.

Witnesses further alleged that the stolen funds were squandered on gambling activities, severely impacting the company’s operational capacity.

They claimed that after leaving OTCL, Khatwani established what they described as a “pseudo firm” allegedly used to channel additional money.

The prosecution argued that the consistent witness testimonies demonstrate a clear pattern of a director who systematically abused his position to defraud the company while intimidating employees into silence.

Khatwani, who lives in Kenya with his family and previously worked as director at Oki General Trading Limited in Baba Dogo within Ruaraka constituency, has pleaded not guilty to the theft charges.

He was released on bond under strict conditions, including surrendering his passport to the court.

The case continues today with additional witnesses expected to testify as the prosecution builds its case around the alleged Sh356,711,174.40 theft.

Magistrate Alego has directed that hearings continue as the court examines financial records and communication logs that allegedly demonstrate the full extent of the financial manipulation at the heart of this case.​​​​​​​​​​​​​​​​