Home Court News Businessman Honey Khatwani charged with Sh 356Million Fraud has been Autioned of his properties.

Businessman Honey Khatwani charged with Sh 356Million Fraud has been Autioned of his properties.

by Faith Karanja

A Court on August 15,2025 ordered Police to Supervise Auction in Honey Khatwani Rent Dispute
The quiet corridors of Milimani Commercial Courts turned tense yesterday as the long-simmering dispute between businesswoman Honey Khatwani, Galaxy Middle East & Africa Limited trading as Smart Pro (Your Trust Our Mission), and their landlords took a dramatic turn.

Sitting before Honourable Lucy Njora, Senior Principal Magistrate, the case, filed under MCCCMISC/E2036/2025, pitted auctioneer Zacharia Baraza Siuma Auctioneers and Oki General Trading Ltd against Galaxy Middle East & Africa Ltd and its directors, among them Ms. Khatwani. The landlords had moved the court seeking to recover rent arrears, arguing that months of unpaid obligations had crippled their operations and forced them into distress.

The magistrate issued orders directing the OCS Parklands Police Station and OCS Ruaraka Police Station to supervise the auctioneer in carrying out the distress for rent. “This court issues an order that the police officers in charge of Parklands and Ruaraka police stations do supervise execution of the distress,” read part of the ruling delivered on 15th August 2025.
Yet the judge was quick to clarify the scope of the directive. “This order should not be interpreted or construed in any manner whatsoever to mean an eviction or demolition order,” Hon. Njora cautioned, underscoring that the distress was limited strictly to the collection of arrears.

Lawyers for the applicants hailed the ruling as a victory for landlords struggling against mounting defaults. “Our clients have endured months of losses while tenants continue to occupy prime space without honoring their obligations,” said one counsel after the session. “The court’s order is a firm reminder that property rights must be respected.”

But on the other side of the courtroom, supporters of Honey Khatwani described the case as another instance of landlords weaponizing distress procedures against struggling businesses. “This is intimidation, pure and simple,” remarked a friend of the embattled entrepreneur. “Honey has built her name in this city for years, and now she is being cornered in public over a commercial disagreement that could have been resolved without humiliating auctions.”

The penal notice attached to the order added weight to the ruling: any disobedience of the court’s directive will attract penal consequences. In practical terms, that means Khatwani and her company must either clear the rent arrears or face the auctioneer’s hammer, with police standing by to enforce compliance.

The case has already triggered heated debate within Nairobi’s commercial circles. Some see it as a necessary stand against tenants who exploit legal loopholes to dodge payment, while others frame it as a heavy-handed tactic that exposes small and medium enterprises to ruin.

Court insiders whispered that the matter may not end with the distress order. “There will be more applications, more filings,” said one clerk familiar with the case. “This is just the beginning. Honey Khatwani is not the type to fold easily.”
Outside the courthouse, a handful of business owners watched proceedings with concern. One trader compared the climate to a storm. “When landlords and tenants clash like this, it shows how fragile Nairobi’s business environment has become,” he said. “Everyone is struggling, but when it reaches court and police enforcement, reputations are on the line.”

For now, the spotlight remains fixed on Honey Khatwani and Galaxy Middle East & Africa Ltd. As auctioneers prepare their ledgers and the police stand ready to supervise, Nairobi waits to see whether the dispute will end with a quiet settlement, or a very public auction that could redefine the fortunes of one of the city’s most recognizable entrepreneurs.

 

 

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