How Company Director Accused of Fraud Siphoned Sh356 Million to Personal Accounts

Nairobi, Kenya — A former director of Oki Trading Kenya Limited (OTKL) is at the centre of a major corporate fraud case after allegedly siphoning more than Sh356 million from the firm to his personal and family accounts before resigning to launch his own company.

Testifying before Senior Principal Magistrate Dolphina Alego at the Milimani Law Courts, current OTKL director Deepak Rajoria accused his predecessor, Honey Khatwani, of orchestrating the fraudulent scheme between 2020 and 2024.

Rajoria, who was appointed director in January 2025 after serving with OTKL’s parent company in Dubai, told the court that he uncovered massive financial gaps and missing documents upon taking office. “When I came to Kenya, I was appointed director of the company. I later discovered that large sums of money and vital records were gone,” he testified.

According to the prosecution, Khatwani, an Indian national, diverted client payments and company funds into his personal accounts, including his wife’s M-Pesa line, while also issuing falsified invoices that understated amounts received from customers.

An audit later confirmed that OTKL had lost Sh356,711,806 between 2021 and 2024. Prosecutors allege the funds were used to bankroll the establishment of Galaxy Middle East Africa Limited, a rival company Khatwani registered with another former employee after leaving OTKL in July 2024.

He has been charged with stealing USD 2,786,174.40 (approximately Sh356.7 million) from OTKL, money the court heard belonged to Oki General Trading Limited, the firm’s Dubai-based parent company. The alleged offences took place in Babadogo, Nairobi County.

Khatwani has denied the charges and is out on bond as the case continues.

The high-profile fraud case highlights the growing challenge of corporate governance and internal fraud in Kenya’s private sector, where insiders have been implicated in multimillion-shilling scandals involving financial institutions and multinational subsidiaries.

The matter will be mentioned later this month for further hearing.