The testimony was presented before Senior Principal Magistrate Ben Mark Ekhubi as the prosecution continued calling witnesses in a case involving the alleged loss of more than Ksh356 million.
Witness alleges employees worked under fear
One prosecution witness told the court that employees operated in an environment of fear and intimidation during Honey Khatwani’s tenure at Oki Company.
According to the witness, Khatwani allegedly issued verbal threats that discouraged employees from questioning his instructions or raising concerns about company operations.
The witness claimed he feared losing his job if he failed to comply with the director’s directives.
Although he acknowledged he had no written evidence of the threats, he maintained that the intimidation influenced how employees carried out their duties.
Former employee speaks about work permit
The court also heard from another witness who said he joined Oki Company in July 2023 without first obtaining a work permit.
He testified that he repeatedly asked Khatwani to facilitate the processing of the permit but that no action was taken.
When questioned about documentary proof, the witness said many discussions took place through phone calls rather than emails.
“I am the eyewitness. Not everything is done through emails—some things are done through calls,” he told the court.
The witness further stated that although he signed an employment contract, he never retained a copy.
Employees allegedly paid in cash
The witness testified that employees were paid in cash and did not receive payslips.
He told the court that despite requesting to have his salary deposited into a bank account, Khatwani never opened one for him.
According to the witness, the company also failed to process the required work documentation during his employment.
Prosecution cites audit findings
Earlier testimony in the case alleged that client payments intended for Oki Company were diverted into Honey Khatwani’s personal bank accounts and accounts linked to his family.
A prosecution witness told the court that company funds were deposited into Khatwani’s Ecobank accounts in Kenya shillings and US dollars, while receipts were shared with him through WhatsApp.
The witness also alleged that an audit report documented numerous client cheques deposited into Khatwani’s personal accounts instead of company accounts.
According to the prosecution, the audit report contains evidence relating to revenue, collections, expenditure, and other financial records.
Khatwani faces fraud-related allegations
Honey Khatwani is accused of orchestrating a scheme that allegedly siphoned more than Ksh356 million from Oki Company through falsified records, diversion of client payments, and misuse of company funds.
The prosecution is expected to continue presenting witnesses as the hearing progresses.
The matter will be mentioned again on September 29, when additional witnesses are expected to testify.
