How Baba Dogo-based firm CEO diverted Sh356 million to wife's Mpesa account

Witness testimonies have laid bare evidence that former Oki Trading Company Limited (OTCL) managing director, Honey Khatwani, systematically siphoned more than Sh356 million from the firm by diverting client funds into his personal bank accounts and even into his wife’s M-Pesa account.  

Testifying before Senior Principal Magistrate Dolphina Alego at the Milimani Law Courts on Thursday, two key witnesses described a workplace marred by exploitation, manipulation, and financial impropriety that allegedly flourished between January 2020 and June 2024.

The first witness, Jatin Aswani, told the court he joined OTCL in July 2023 but worked without proper documentation. 

Despite repeated requests, Khatwani allegedly failed to facilitate his work permit.

“Not everything is done through emails, some things are done through calls,” Aswani explained, saying most instructions came informally.

He further testified that he signed an employment contract but was never given a copy.

 “Employment contracts are always with the director, not the employees,” he said, noting that staff were often paid in cash as opposed to banks.

Aswani alleged he was coerced to continue working under threats. 

However, during cross-examination by Khatwani's lawyer Cain Mingo, he admitted he had no physical proof of the intimidation, only his word.

The second witness, Sameer Kewal Ramani, a relative of the accused and former supplier manager at OTCL, offered damning financial details.

Ramani told the court he was routinely instructed by Khatwani to deposit client payments into his personal Ecobank account and, at times, into his wife’s Mpesa account.

“I knew it was wrong, but he was my senior and threatened me if I dared to report to other directors,” Ramani testified.

He explained that sales reports and deposit slips were shared with Khatwani via WhatsApp. 

“I would send Honey bank receipts via WhatsApp after depositing money in his personal accounts,” he added.

Ramani also revealed that while still serving as OTCL’s managing director, Khatwani secretly registered a rival entity known as Galaxy Middle East Africa Limited, and redirected OTCL clients there.

“He even picked employees from Oki Trading Company Limited to work in the new company, tricking them into believing it was the same entity,” Ramani said. 

“They were working for him without pay.”

The court heard that the scheme was reportedly unraveled after an internal audit showed that Sh 356,711,806 was missing from OTCL accounts. 

According to the audit report filed in court, client cheques were deposited into Khatwani’s personal accounts, while fake invoices were generated to mask the theft.

The prosecution stated that the funds belonged to OKI General Trading Limited and were allegedly stolen while Khatwani held the position of director at the firm’s Babadogo branch in Nairobi County.

During cross-examination, the defence lawyer pressed Ramani on whether he had direct proof of transferring money to Khatwani.

“As a witness, do you have any formal evidence indicating you sent money to the accused person?” lawyer Mingo asked.

Ramani replied: “It is  composed in the audit report before this court.”

The defence further applied for the temporary release of Khatwani’s passport, claiming he needed to travel for a business trip to Dubai between September 29 and October 16, 2025.

Magistrate Alego ordered the accused to serve the DPP with his application seeking the release of his travel document and directed the matter to be mentioned on September 29, 2025, for a decision on the passport request. 

The full hearing is scheduled to resume on October 22 and 23, 2025.

In the case, Khatwani is accused of stealing $2,786,174.40 (approximately Sh356,711,174.40) from OTCL, the money that came into his possession through his employment.

The alleged offence occurred at Babadogo in Nairobi County between January 1, 2020, and June 30, 2024.

The court heard that the funds belonged to OKI General Trading Limited and were allegedly stolen by Khatwani while he was a company director.