Company Director Released on Sh5 Million Bail in Massive Fraud Case

Nairobi, Kenya – A Nairobi-based company director accused of defrauding his own firm of over Sh356 million has been granted bail following a court appearance that highlighted one of the largest corporate theft cases in recent months.

Honey Khatwani, a director at OKI General Trading Limited, walked free on Tuesday after Principal Magistrate Dolphina Alego at Milimani Law Courts set his bail at Sh5 million cash or an alternative bond of Sh10 million with two Kenyan contact persons.

The case centers on allegations that Khatwani stole USD 2,786,806.05 (approximately Sh356,711,174.40) from his own company between January 1, 2020, and June 30, 2024.

The alleged theft occurred at Barbado within Nairobi County, according to court documents.

The court imposed stringent conditions on Khatwani’s release, requiring him to surrender all travel documents, including his passport, to prevent potential flight from the country.

The magistrate’s decision came after the prosecution expressed concerns about the significant amount involved and Khatwani’s possession of travel documents.

“Given the magnitude of the alleged fraud, appropriate restrictions are necessary,” the prosecution argued during the bail hearing on Monday, though they did not oppose his release outright.

Khatwani’s legal team, led by lawyer Kennedy Echesa, mounted a vigorous defense for favorable bail terms, emphasizing their client’s presumption of innocence and ties to the community.

“The accused is innocent until proven otherwise, and we urge the court to consider this while determining the bond terms,” Echesa told the court.

The defense highlighted that Khatwani operates businesses employing over 50 people and has strong family ties in Kenya.

The defense also noted that Khatwani had previously been released on Sh200,000 cash bail upon his initial arrest and requested the court maintain similar terms.

During the proceedings, Khatwani’s legal team informed the court that their client was unwell and requested permission for him to receive medical attention at Avenue Hospital, adding another dimension to the case.

Khatwani faces charges of stealing by a director contrary to Section 282 of the Penal Code.

The prosecution alleges that the substantial sum came into his possession by virtue of his position as a company director at OKI General Trading Limited.

The accused has pleaded not guilty to all charges.

This case underscores ongoing concerns about corporate governance and internal controls within Kenyan businesses.

The allegations suggest a prolonged period of alleged misconduct spanning over four years, raising questions about oversight mechanisms within the company.

The matter is expected to proceed to full trial, where the prosecution will need to prove beyond reasonable doubt that Khatwani misappropriated the funds entrusted to him in his directorial capacity.