Yes, okay is in the scrabble dictionary

...and is worth 10 points by itself.

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Okay Definition

noun

Variant of OK1.

from The American Heritage Dictionary of the English Language, 4th Edition

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Here are some other words you could make with the letters OKAY, you can also
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Top Words by points	Points
kayo	11

2 letter words with OKAY	Points
ay	5
ka	6
ok	6
oy	5
ya	5
yo	5

3 letter words with OKAY	Points
kay	10
koa	7
oak	7
oka	7
yak	10
yok	10

4 letter words with OKAY	Points
kayo	11
oaky	11
okay	11

Found 15 words in 0.11211 seconds