The allegations were presented before Milimani Senior Principal Magistrate Dolphina Alego during the ongoing trial.
Director narrates alleged company losses
OKI Trading Kenya Limited Director Deepak Rajoria told the court that Khatwani allegedly diverted company funds during his time as a director.
Rajoria said Khatwani used the funds to establish his own company, Galaxy Middle East Africa Limited, before leaving OKI General Trading Limited.
“I was an employee of the mother company based in Dubai and when I came to Kenya, I was appointed as a director of the company,” Rajoria told the court.
He explained that he joined the Kenyan company in January 2025 and discovered that funds and important documents were missing.
Audit reveals alleged KSh356 million loss
The court heard that after discovering the missing funds and records, the company hired an auditor to examine its financial transactions.
According to Rajoria, the audit covered the period between 2021 and 2024 and revealed losses amounting to KSh356,711,806.
The witness told the court that some company funds and client cheques were allegedly deposited into Khatwani’s personal accounts and accounts linked to his wife.
Former director accused of creating competing company
The court heard that Khatwani, an Indian national, allegedly used the diverted funds to support Galaxy Middle East Africa Limited.
The company was reportedly registered before his resignation from OKI General Trading Limited.
The prosecution alleges that Khatwani became a director of the new company together with another former employee.
Allegations of fake invoices
The court further heard allegations that Khatwani created false invoices showing lower amounts than the money received from clients.
The prosecution claims the alleged actions affected the company’s financial records and reduced the amount of money reflected in official documents.
Khatwani denies allegations
Khatwani is facing charges of stealing USD 2,786,174.40, approximately KSh356 million, from OKI General Trading Limited.
The prosecution alleges that he committed the offence between January 1, 2020, and June 30, 2024, at Barbado area in Nairobi County.
The funds are alleged to have come into his possession through his position as a company director.
The hearing will continue on September 22, 23, 24, and 25, 2025.
