Kenyan car dealer and entrepreneur Khalif Kairo has once again found himself at the centre of controversy over vehicle delivery disputes.
This follows the High Court’s order requiring him and his company, Kai & Karo Limited, to refund a customer following a failed vehicle purchase transaction in which the customer paid Sh3.4 million but did not receive the car as agreed.
Details of the dispute indicate that the buyer initially paid Sh2.2 million in cash towards the purchase of the Audi Q7.
The customer subsequently raised another Sh1.7 million through the sale of a Subaru Outback, bringing the total amount paid to Sh3.9 million.
However, the vehicle was not delivered despite the payments made to Kairo’s company.
Also Read: 10 critical lessons from Khalif Kairo’s business troubles
Customer receives partial refund after failed Audi Q7 deal
After the failed transaction, the customer received Sh500,000 of the amount paid, leaving Sh3.4 million outstanding.
Unable to recover the remaining money through the transaction, the buyer pursued legal action against Kairo and Kai & Karo Limited to secure a refund.
The dispute was eventually brought before the High Court, which ruled that the car dealer and his company should return the outstanding Sh3.4 million.
Kairo’s previous court cases over car transactions
The latest ruling adds to the legal challenges facing the businessman, who has previously been accused of failing to fulfil vehicle purchase and importation agreements.
In January 2025, Kairo was charged with two counts of obtaining money through false pretences, contrary to Section 315 of the Penal Code.
In the first case, he was accused of obtaining Sh2,984,998 from Dona Ayalo Okoth by allegedly misrepresenting that he would purchase a Subaru Outback for her.
The prosecution stated that the money was transferred to Kai & Karo Limited’s bank account on July 29, 2024.
In a separate charge, Kairo was accused of receiving Sh2,145,150 from Jeff Kyule, who had paid the money towards the importation of a Honda Vezel from Japan.
According to the prosecution, Kyule made the payments in instalments between July 10 and July 29, 2024, in Westlands, but the vehicle was allegedly never delivered.
Kairo denied both charges when he appeared before Chief Magistrate Lucas Onyina. Through his lawyers, led by Danstan Omari, he maintained that the cases had been orchestrated by business competitors motivated by jealousy.
Kairo speaks out on business challenges
In a previous media interview, Kairo acknowledged that the legal disputes had taken a toll on his motor vehicle business, revealing that Kai & Karo closed its Kiambu dealership yard following the developments.
He nevertheless expressed confidence that the company would recover within months, insisting that his business operations were legitimate.
Kairo attributed the difficulties to cash flow constraints and declining confidence among customers and financial institutions.
“We found ourselves in this mess because it is the nature of business. All businesses have to go through challenges. Especially startups which are at the verge of collapse due to cash flow challenges resulting from client and bank mistrust,” he said.
He also defended his track record in the motor vehicle industry, saying he has spent more than a decade in the business and facilitated the sale of over 2,000 vehicles.
“I have been in the car business for over 10 years, and I have sold over 2000 cars. There are people who know my story. I am being crucified because the company has failed to deliver 10 to 15 vehicles, but the 2,000 clients can attest that I run a legitimate business,” Kairo added.
Also Read: How Khalif Kairo bounced back after losing business to partners
