Court News

The trial of former Oki Company director Honey Khatwani continued at the Milimani Law Courts, where witnesses accused him of intimidating employees and exerting pressure on staff as the prosecution pursued allegations of financial misconduct involving the company.

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.

Former presidential advisor on political affairs Davis Nathan Chelogoi has defended the authenticity of his land ownership documents, telling a Nairobi court that he lawfully acquired the disputed property and is the target of a scheme to dispossess him.

Chelogoi, 72, denied fraud-related charges during his defence before the court, describing the case as a “bombshell” that has damaged his reputation and disrupted his personal life.

Chelogoi says he legally acquired the land

At the centre of the dispute is a 7.89-hectare parcel of land in Nairobi.

The prosecution alleges that Chelogoi conspired with others to fraudulently acquire the property.

However, the former presidential advisor told the court that he lawfully obtained the land on January 31, 1995, while serving as a District Commissioner.

He testified that he paid Ksh2.48 million in premium to the Ministry of Lands before taking possession after being shown the property by the Commissioner of Lands.

Title documents issued through official process

Chelogoi said he later began the formal process of obtaining ownership documents.

According to his testimony, he applied for the title in December 2020 and received an allotment letter together with a certificate of lease in March 2021.

He maintained that the documents were issued by the Ministry of Lands and authenticated by senior government officials.

The court heard that Lands Registrar Charles K. Ngetich confirmed the signatures appearing on the documents were genuine.

Court previously declined eviction applications

Chelogoi told the court that no one challenged his occupation of the land until July 2022, when individuals accompanied by the complainant and police officers entered the property while he was away.

He said the complainant subsequently filed several applications before the Environment and Land Court seeking his eviction.

According to Chelogoi, all the applications were dismissed, and no court has ever issued an eviction order against him.

“No eviction order has ever been issued against me. The Ministry of Lands authorized my payments, issued my documents, and confirmed their validity,” he told the court.

Former advisor denies forgery allegations

Chelogoi also rejected allegations that he forged the signature of senior Lands officer Pauline Pesa.

He argued that the prosecution had failed to present handwriting experts or signature samples to support the forgery claims.

He further denied charges of uttering a false certificate of title, insisting that all documents in question were officially issued by the Ministry of Lands.

Defence relies on ministry officials

The defence has called several officials from the Ministry of Lands to support Chelogoi’s case.

Among them is Peter Njoki Mutua, who testified that he verified Chelogoi’s payment receipt.

The court also heard that the Principal Secretary for Lands validated the payment receipt in November 2023 after investigators questioned its authenticity.

Co-accused also denies charges

Chelogoi’s co-accused has similarly denied any wrongdoing.

Through lawyer Simon Mburu, the second accused argued that the prosecution had failed to produce credible evidence linking him to any fraudulent transaction.

The hearing continues tomorrow, with Chelogoi expected to maintain that his land ownership documents were lawfully issued and remain valid.

A legal battle over the reinstatement of former Director of Aircraft Accident Investigation, Captain Martyne Luther Lunani, has escalated to the Court of Appeal, deepening a dispute between the Ministry of Roads and Transport and the Public Service Commission (PSC) over compliance with court orders.

The case stems from a ruling by the Employment and Labour Relations Court, which found that the Ministry of Roads and Transport unlawfully failed to renew Capt. Lunani’s contract.

Employment Court ruled in Lunani’s favour

On April 30, 2025, Justice Hellen Wasilwa held that the ministry had violated Capt. Lunani’s constitutional and contractual rights by failing to renew his contract.

The court ordered the Public Service Commission (PSC) to re-engage him in a suitable position and directed that he be paid all salary arrears from July 1, 2024.

Justice Wasilwa also awarded Capt. Lunani Ksh3 million in damages against the Cabinet Secretary for Roads and Transport for breaching his contractual rights.

PSC reinstated Capt. Lunani

Following the judgment, the PSC moved to comply with the court’s orders.

According to an affidavit sworn by PSC Secretary Paul Famba, the commission met on May 28, 2025, and resolved to reappoint Capt. Lunani to his previous position for a three-year term.

The PSC also faulted the Principal Secretary for Transport, stating that decisions on contract renewals fall exclusively within the commission’s constitutional mandate.

The commission further stated that the Principal Secretary’s actions had unnecessarily exposed the government to financial liability.

On June 9, 2025, the PSC formally instructed Principal Secretary Mohamed Dhagar to issue Capt. Lunani’s employment contract immediately.

Lawyer seeks contempt proceedings

Despite the PSC’s action, the Ministry of Roads and Transport did not implement the reinstatement.

Lawyer Henry Kurauka, representing Capt. Lunani, subsequently asked the Employment Court to summon the Principal Secretary for allegedly disobeying the court’s orders, arguing that while the PSC had complied, the ministry had failed to complete the reinstatement process.

Ministry defends its position

In response to the contempt application, the Ministry of Roads and Transport, through Principal Secretary Teresia Mbaika, argued that the application was premature.

The ministry contended that Capt. Lunani had not first obtained a Certificate of Order Against the Government, which it claimed was necessary before enforcement proceedings could begin.

Regarding the Ksh3 million damages award, the ministry argued that payment could not be processed because the judgment was delivered after the 2024/25 financial year budget had effectively closed.

It told the court the compensation would instead be included in the 2025/26 supplementary budget, subject to approval by the National Treasury and Parliament.

Court of Appeal now seized of the dispute

The ministry also disclosed that the Cabinet Secretary for Roads and Transport and the Attorney General had filed Nairobi Civil Appeal No. 460 of 2025 challenging the Employment Court judgment.

The appellants have also sought orders staying the implementation of the judgment pending the determination of the appeal.

The Court of Appeal certified the application as urgent.

Constitutional standoff continues

The dispute has created an unusual constitutional situation, with the Public Service Commission implementing the Employment Court’s judgment while the Ministry of Roads and Transport simultaneously seeks to overturn it through the Court of Appeal.

Meanwhile, the Employment and Labour Relations Court is expected to hear the contempt application on October 21, 2025.

The outcome of both proceedings will determine whether Capt. Lunani’s reinstatement is fully implemented or suspended pending the appellate court’s final decision.

Keroche Breweries Limited has mounted a strong legal challenge against a High Court petition seeking its liquidation over an alleged KSh75 million debt, arguing that the proceedings are founded on a defective statutory demand and have caused significant reputational damage.

The company is also seeking KSh10 billion in damages, accusing the petitioner of abusing the insolvency process.

Liquidation petition stems from employment dispute

The dispute arose after Sam Krus Shollei filed a liquidation petition before the High Court in Nakuru on May 23, 2025.

The petition seeks to wind up Keroche Breweries over an alleged unpaid settlement arising from a 2019 employment dispute between the parties.

According to court documents, the claim is based on an alleged outstanding debt of KSh75 million.

Keroche challenges validity of statutory demand

Keroche’s defence focuses on the statutory demand that preceded the liquidation proceedings.

The notice, dated June 30, 2025, required the brewery to settle the alleged debt within 21 days.

However, the company argues that the demand is legally defective because it was signed by the Deputy Registrar of the High Court instead of the creditor or an authorised representative.

Through its lawyers, Keroche contends that the Insolvency Act requires statutory demands to be issued by the creditor or a duly authorised agent.

The company is therefore asking the court to declare the statutory demand invalid and strike out both the liquidation petition and the related public notice.

Kenya Gazette notice challenged

Keroche has also challenged the publication of the liquidation petition in the Kenya Gazette on August 21, 2025.

In affidavits sworn by Chief Executive Officer Edward Mwangi Muigai and advocate Karuku Wachira, the company argues that the gazette notice has caused widespread reputational and commercial harm.

According to Keroche, the publication created the impression that the company was insolvent, triggering concern among suppliers, lenders, business partners, and other stakeholders.

The brewery says it employs more than 500 people directly while supporting thousands of others through its supply chain.

Company seeks KSh10 billion in damages

Beyond defending the liquidation proceedings, Keroche has filed a Notice of Motion seeking KSh10 billion in reputational damages.

The company is also asking the court to compel Sam Krus Shollei to publish a public apology with similar prominence to the liquidation notice.

Keroche maintains that it remains financially solvent and continues to operate normally.

Brewery says debt remains disputed

The company argues that the alleged KSh75 million debt is the subject of an ongoing appeal before the Court of Appeal.

According to Keroche, the liquidation petition is being used as a coercive tool to force payment despite the dispute remaining unresolved.

The brewery further points to the petitioner’s withdrawal of a separate contempt application in the underlying proceedings as evidence that the insolvency process is being improperly used.

The High Court is expected to determine whether the statutory demand complied with the Insolvency Act and whether the liquidation petition can proceed.

A disciplinary hearing involving a senior employee of the Kenya Union of Savings and Credit Cooperatives (KUSCCO Ltd.) has been postponed as investigations into the handling of billions of shillings within the institution continue.

Francis Odhiambo, KUSCCO’s former Chief Cashier, remains under investigation by the organization’s management and the Directorate of Criminal Investigations (DCI).

Disciplinary hearing postponed

Mr. Odhiambo’s disciplinary hearing had been scheduled for September 22, 2025.

However, KUSCCO postponed the proceedings, citing unforeseen circumstances.

The organization indicated that a new hearing date will be communicated at a later time.

Investigation focuses on billions of shillings

According to court documents cited by Mr. Odhiambo’s legal team, two major KUSCCO accounts handled more than KSh2.5 billion between 2013 and 2024.

The investigations are examining how funds in the accounts were managed during that period.

Employee denies wrongdoing

Through his lawyers, Mr. Odhiambo has denied any involvement in financial misconduct.

His legal team maintains that he neither initiated nor benefited from the transactions under investigation.

They argue that all transactions were carried out in accordance with internal procedures and received the necessary approvals.

Defence disputes responsibility for records

A central issue in the disciplinary case concerns the custody of financial records.

Mr. Odhiambo’s lawyers argue that he only acted as a temporary custodian of payment documents for approximately one year.

They insist that responsibility for maintaining the official records rested with the Finance Manager rather than the Chief Cashier.

According to the defence, Mr. Odhiambo should not be held accountable for record management duties assigned to another office.

Lawyers cite cooperation with investigators

The defence further states that Mr. Odhiambo has fully cooperated with investigators from the Directorate of Criminal Investigations.

His lawyers say he voluntarily provided financial documents covering transactions from 2017 to 2023 with the approval of his supervisor.

They also claim that investigators initially omitted one account under Mr. Odhiambo’s supervision.

According to the defence, records from that account primarily relate to marketing expenses and staff allowances.

The disciplinary proceedings are expected to resume once KUSCCO announces a new hearing date.

Retired employees of Standard Chartered Bank Kenya have threatened fresh legal action, including contempt of court proceedings, in an escalating dispute over pension benefits following a landmark Supreme Court ruling.

The pensioners warn that the bank’s senior executives and pension fund trustees could face fines, personal liability, or even civil jail if they fail to implement the court’s decision for all affected retirees.

Pensioners issue seven-day ultimatum

The group, identifying itself as the “non-629 members,” has issued a seven-day demand to Standard Chartered Bank Kenya and the trustees of the bank’s pension fund.

The retirees want the bank to extend the benefits of the Supreme Court judgment to all pensioners affected by the 1999 pension scheme transition, not just the 629 individuals who were parties to the litigation.

They argue that failing to do so amounts to unequal treatment and undermines the intention of the Supreme Court’s decision.

Supreme Court ruled on pension calculations

The dispute follows the Supreme Court’s judgment delivered on September 5, 2025.

The apex court upheld earlier decisions by the Retirement Benefits Tribunal, the High Court, and the Court of Appeal, which found that Standard Chartered Bank Kenya had used incorrect actuarial factors when restructuring its pension scheme in 1999.

The Supreme Court described the case as one of significant public interest because of its implications for the integrity of Kenya’s pension system.

Executives accused of failing to comply

The retirees have identified several senior officials whom they believe bear responsibility for implementing the judgment.

According to the group, the Chief Executive Officer is ultimately responsible for ensuring compliance with the court’s orders.

The Chief Financial Officer is accused of failing to properly recognize the financial implications of the judgment, while the Head of Legal has been criticized over earlier correspondence stating that the non-629 pensioners would not benefit from the litigation.

The pension fund trustees and board members are also accused of failing to discharge their fiduciary and oversight responsibilities.

Pensioners seek broader remedies

The retirees are demanding several measures, including:

• A comprehensive recalculation of pension benefits for all affected members.
• Payment of accrued interest on revised pension balances.
• An independent actuarial review of the pension scheme.
• Greater transparency with pensioners, shareholders, and regulators.
• A formal engagement between the retirees and the pension fund trustees.

Contempt proceedings threatened

The pensioners say they will move to court if their demands are ignored within seven days.

They intend to seek contempt of court orders against the bank and the named officials, arguing that limiting implementation of the Supreme Court decision to only 629 members would amount to deliberate non-compliance.

If successful, the application could expose the respondents to sanctions that may include fines, civil jail, and personal liability for legal costs.

A group of retired Standard Chartered Bank Kenya employees has threatened legal action against the bank over a dispute involving pension benefits.

The pensioners, known as the “non-629 members,” accuse the bank of failing to extend benefits granted in a Supreme Court ruling to all affected retirees.

They have warned that they may seek contempt of court proceedings against the bank’s senior leadership if the institution fails to act within seven days.

Pensioners demand implementation of court ruling

The retirees want Standard Chartered Bank Kenya and the pension fund trustees to include all affected pensioners in the remedies from a Supreme Court decision issued on September 5, 2025.

The ruling upheld earlier decisions from the Retirement Benefits Tribunal, the High Court, and the Court of Appeal.

Those decisions found that Standard Chartered Bank used incorrect actuarial factors during a pension scheme transition in 1999.

The Supreme Court described the matter as a case of significant public interest due to its impact on Kenya’s pension system.

Dispute over pension beneficiaries

The main disagreement involves which pensioners qualify for the benefits.

The bank has indicated that it will comply with the ruling for the 629 individuals who filed the original case.

However, the wider group of retirees argues that the decision should also cover other members who moved to the pension scheme during the same 1999 transition.

They claim excluding them violates equal treatment principles and ignores the intention of the court ruling.

Pensioners accuse bank officials

The retirees have raised allegations against several Standard Chartered officials.

They have accused the Chief Executive Officer of failing to ensure compliance with the court decision.

The group also claims the Chief Financial Officer failed to provide proper information about the financial impact of the pension issue.

They have further criticised the Head of Legal over a letter sent in August before the Supreme Court ruling.

According to the pensioners, the letter stated that the non-629 members would not receive any benefits and warned them about possible legal costs.

The retirees have also accused the Board of Directors and pension fund trustees of failing to protect members’ interests.

Demands before possible court action

The pensioners want an independent actuarial review of the affected pension accounts.

They are also demanding full disclosure of information to members and shareholders.

Other demands include recalculating pension balances, adding accrued interest, and holding a formal meeting with the trustees.

If the bank fails to respond within seven days, the group plans to file an application at the High Court.

They want the court to consider contempt sanctions against the officials and trustees they have named.

The possible penalties may include fines, civil jail terms, and personal responsibility for legal costs.

The Court Reporters Association of Kenya (CRAK) has raised concerns following the arrest of Collins Kweyu, a photojournalist with The Standard, urging authorities to respect his legal rights as investigations continue.

CRAK said it had been informed of Mr. Kweyu’s arrest, adding that preliminary information indicates the matter arose from a complaint filed by a Migori-based judge.

Journalist Arrest Sparks Legal Rights Debate

While acknowledging the responsibility of law enforcement agencies to investigate allegations of wrongdoing, CRAK emphasized that every suspect is entitled to protection under the law.

The association noted that suspects should only remain in custody where there are compelling reasons to justify continued detention, as provided under Kenya’s legal framework.

CRAK argued that Mr. Kweyu is a respected journalist with a known residence and can be summoned by police or required to appear in court if necessary.

CRAK Calls for Release Pending Investigations

The association called for the journalist’s release as investigations proceed, maintaining that pre-trial detention should not be used as a form of punishment.

CRAK stressed that the presumption of innocence remains a fundamental principle of Kenya’s justice system, meaning that a person under investigation should not be treated as guilty before a court makes a determination.

Concerns Over Treatment of Suspects in Custody

The arrest has also renewed discussions about the treatment of individuals held by law enforcement agencies.

CRAK expressed concern over the broader issue of suspects’ welfare while in custody, referencing recent public concerns surrounding deaths and alleged mistreatment of individuals during detention.

The association said protecting the rights and dignity of suspects is essential in maintaining public confidence in the justice system.

CRAK Urges Authorities to Uphold Due Process

CRAK Secretary General Sam Kiplagat called on law enforcement agencies to operate within the law and ensure that investigations are conducted fairly.

The association emphasized that the right to bail and fair treatment are important safeguards against misuse of police powers.

As investigations continue, CRAK has urged all relevant authorities to respect Colli

Kamukunji residents in Nairobi have petitioned the Inspector General of Police over the branding of California Police Station by a private company.

The Kamukunji Dwellers Association filed the petition through E&D Advocates on September 17. The residents want authorities to investigate the alleged involvement of a private entity in the running of the station.

Residents oppose private branding of police station

The residents claim a company known as ATIS branded California Police Station.

They argue that the move turns a public security facility into a private-sponsored institution.

The association says the arrangement threatens public confidence in the National Police Service.

The residents described the branding as a corporate intrusion into a government facility.

Petition raises concerns over station commander

The petition also questions the conduct of the station’s Officer Commanding Station (OCS), Aden Denge Guyo.

The residents accuse the OCS of acting in the interests of ATIS instead of the public.

They claim some residents have faced unfair arrests and harassment linked to the alleged private influence.

The association wants the Inspector General of Police to investigate the allegations.

Residents issue demands to police leadership

The Kamukunji Dwellers Association has issued several demands to the Inspector General.

They want police authorities to:

• Remove all ATIS branding from California Police Station.
• Investigate the conduct of OCS Aden Denge Guyo.
• Stop private companies from branding or sponsoring police stations.

The residents have given authorities 14 days to respond.

Legal action threatened

The association has warned that it will take further action if the demands are ignored.

Through their lawyers, the residents said they may file a constitutional petition.

They also threatened public engagement and lawful demonstrations.

The association sent copies of the petition to the Principal Secretary for Interior and the Director of Criminal Investigations.

The Inspector General of Police has not issued a response to the claims.