Former Oki General Trading Director Honey Khatwani is accused of fomenting the tax troubles that are tormenting the company after the Kenya Revenue Authority (KRA) demanded Ksh827.4 million ($6.376 million) in unpaid.

The taxes are linked to transactions undertaken during his tenure at the firm. The company, through its legal team, told the Tax Appeals Tribunal that most of the disputed transactions and withdrawals occurred when Khatwani was in charge of the company’s operations and finances between 2020 and 2024.

(Current exchange rate – $1 = 129 Kenya shillings)

KRA wants the tribunal to uphold the assessment, which includes Ksh258.2 million in Pay as You Earn (PAYE), Ksh438.4 million in corporate tax, Ksh130.6 million in VAT and Ksh44, 877 in withholding tax.

According to documents filed before the tribunal, KRA investigations into Oki General Trading’s Eco bank and Absa accounts revealed withdrawals amounting to more than Ksh604 million by directors and staff members during the audit period. The taxman argued that the withdrawals constituted taxable earnings and benefits.

“The drawings by the company’s staff and directors from company bank accounts were presumed to be earnings and were therefore subjected to PAYE,” KRA stated in its filings.

Oki General Trading, however, insisted that some of the questioned transactions were unauthorised withdrawals and misappropriated funds allegedly linked to Khatami’s tenure as director.

The company further argued that KRA wrongly ascribed the disputed withdrawals as employment income despite ongoing criminal and commercial proceedings concerning alleged loss of company funds.

Khatwani, a former director of Oki General Trading, is separately facing criminal proceedings over allegations that he stole about Sh356 million from the company between January 2020 and June 2024 while serving as director.

Court filings in the criminal case allege that company funds were diverted into personal accounts and used to establish other businesses.

Before the tribunal, KRA also accused Oki General Trading of understating imports, failing to account for stock reflected in customs records and claiming purchases for which customs duty had allegedly not been paid.

“The variances indicate that the company received stock items more than those accounted for as purchases in the financial statements,” KRA argued.

The authority additionally faulted the company for failing to provide payroll records, staff contracts, forensic audit reports, transfer pricing documents and stock reconciliations during the objection stage.

KRA confirmed the assessment through an objection decision dated July 17, 2025 after, according to the authority, the company failed to provide sufficient supporting records. The tribunal also received company registry documents linked to related commercial disputes.

A companies registry extract dated April 7, 2026 and addressed to CJ Law & Associates LLP lists Sai Nat Ventures Limited under a company number with Kamesh Parana and Martine Vivendi as directors and shareholders.

The registry records show the company is located on Waiyaki Way in Nairobi’s Parklands area. The system-generated certificate was issued by the Registrar of Companies on April 7, 2026.

• A Tell Media report / Elizabeth Were