Fraud suspect Honey Khatwani, who is facing charges of defrauding investors of Sh356 million, has lost part of his properties after a Nairobi court ordered their auction to recover rent arrears.
The auction, supervised by officers from Parklands and Ruaraka Police Stations, took place at Khatwani’s go-downs in Baba Dogo following a ruling by Senior Principal Magistrate Lucy Njora. The case, filed under MCCCMISC/E2036/2025, was brought by auctioneer Zacharia Baraza t/a Siuma Auctioneers and Oki General Trading Ltd against Galaxy Middle East & Africa Ltd and its directors, including Mr. Khatwani.
The landlords argued that prolonged non-payment of rent had crippled their operations, prompting the court to authorize distress for rent. Magistrate Njora directed the police to supervise the auction to ensure law and order.
The ruling also carried a penal notice, warning that disobedience would attract serious consequences. This forced Khatwani and his company to either clear the arrears or submit to the auctioneer’s hammer.
Associates of the embattled businessman have described the move as “humiliating,” while landlords insist the decision was purely legal and necessary.
The auction adds to Khatwani’s mounting troubles, as he continues to battle high-profile fraud charges involving Sh356 million, casting doubt on the stability of his once-prominent business empire.
