Justice Margaret Mungai, sitting at the Milimani Law Courts, declined to issue orders stopping the proceedings, saying the court was currently on recess and could not handle the application unless it was certified as extremely urgent.
Court rejects bid to stop criminal proceedings
Khatwani had moved to the High Court seeking temporary orders to stop the criminal proceedings at the Chief Magistrate’s Court.
He also wanted the court to allow the release of his passport so he could travel to India for business engagements.
His lawyers argued that refusing to release the passport had affected his business operations and caused him serious financial losses.
However, Justice Mungai said the application could only be considered after the court vacation unless it met the threshold for urgent hearing.
Defence argues businessman complied with bail terms
Khatwani, through Wamalwa & Echesa Advocates, argued that he had complied with all bail conditions since his release on June 24, 2025.
His lawyer, Kennedy Echesa, told the court that Khatwani was not a flight risk and had always cooperated with the trial process.
The defence argued that Khatwani needed his passport to travel and manage his international business commitments.
Khatwani also told the court that he had no previous criminal record and would surrender the passport immediately after returning to Kenya.
Prosecution opposes travel request
The prosecution opposed the application, arguing that allowing Khatwani to travel while facing a serious fraud case could interfere with the trial.
The state maintained that the court needed to consider the nature of the charges before allowing any international travel.
Prosecutors argued that economic crime cases require strict measures to ensure accused persons remain available throughout the trial.
Businessman faces Sh356 million fraud charges
Khatwani is facing charges in Criminal Case No. E347 of 2025 at the Chief Magistrate’s Court.
He is accused of stealing approximately Sh356 million belonging to Oki Trading Kenya Limited.
The prosecution alleges that the funds were obtained through his position as a company director.
Khatwani has denied the allegations and is fighting the charges in court.
High Court to consider application later
Justice Mungai did not determine the merits of Khatwani’s application but directed that the matter be addressed after the court vacation period.
The fraud trial will continue before the Chief Magistrate’s Court as the parties await further directions.
The case has attracted attention because of the amount involved and the legal questions surrounding bail conditions, travel restrictions, and the rights of accused persons facing economic crime charges.
