The High Court in Nairobi has declined to halt ongoing criminal proceedings against businessman Honey Khatwani, who is facing trial over an alleged Sh356 million fraud, ruling that the matter could not be entertained during the court’s vacation.
Justice Margaret Mungai, sitting at the Milimani Law Courts, told defence lawyers on Tuesday that she would not stop thetrial at this stage, insisting that any application for such orders would have to wait until the court session resumes. “This court is currently on recess and cannot issue the orders sought. The application may only be considered if certified as extremely urgent,” the judge said.
Khatwani, who is charged in Criminal Case No. E347 of 2025 at the Chief Magistrate’s Court, had sought to suspend the proceedings temporarily and secure the release of his passport to travel to India for what he described as urgent business engagements. Through his advocates, Wamalwa & Echesa Co., he argued that the refusal to allow him to travel had caused him “imminent and irreparable prejudice,” threatening to sink his international business operations.
“The applicant has fully complied with all bail conditions since his release on June 24, 2025, and is not a flight risk,” his lawyer Kennedy Echesa told the court. He added: “Unless this application is heard urgently and the passport released, Mr. Khatwani will lose significant opportunities, rendering the intended revision nugatory.”
In his supporting affidavit, Khatwani insisted that he is a first-time offender with no prior record and had undertaken under oath to return his passport immediately upon his return from India. He accused the trial court of exercising its discretion “on wrong principles” when it declined to release the document on August 11.
“The ruling was unreasonable, disproportionate, and contrary to the interests of justice,” Khatwani swore in his affidavit. He maintained that the decision infringed on his constitutional right to reasonable bail terms under Article 49(1)(h).
But prosecutors opposed the move, warning that allowing the accused to travel while facing such a serious fraud charge could compromise the trial. Sources close to the Office of the Director of Public Prosecutions suggested the state was wary of “creating a precedent where economic crime suspects routinely seek to evade trial under the guise of business travel.”
Justice Mungai stopped short of addressing the merits of the application, instead pointing out that the matter had been mentioned before her during recess and could only be properly canvassed once vacation court procedures were complete. The judge directed that the application be mentioned after the vacation date is confirmed.
The dispute stems from accusations that Khatwani orchestrated a complex fraud scheme involving hundreds of millions of shillings. While details of the alleged fraud are still being tested in the Chief Magistrate’s Court, prosecutors say the case involves falsified contracts and siphoning of funds through shell companies.
The ruling has sharpened the stakes for Khatwani, whose legal team now faces an uphill battle to overturn the magistrate’s decision once the High Court fully resumes. Outside the court, a visibly frustrated Khatwani declined to comment, but his lawyer struck a defiant note. “We are confident the law is on our side. The Constitution guarantees reasonable bail terms, and preventing a man from earning a livelihood when he has complied with all conditions is punitive,” Echesa told journalists.
Observers say the case highlights a growing tension in Kenya’s criminal justice system between protecting accused persons’ constitutional rights and ensuring accountability in high-value economic crimes.
“This matter goes beyond one businessman,” noted a Nairobi-based legal analyst. “It is a test of how courts balance the rights of accused persons with the public interest in prosecuting large-scale fraud.”
For now, Khatwani must stay put in Nairobi as the fraud trial proceeds at the Chief Magistrate’s Court, with the High Court set to revisit his application once recess ends.
