On Tuesday, January 28, Kairo appeared before Milimani Chief Magistrate Lucas Onyina for the mention of one of his numerous fraud cases
Detectives from the Directorate of Criminal Investigations (DCI) have rearrested popular Nairobi motor vehicle entrepreneur Joseph Kairo Wambui, alias Khalif Kairo, moments after exiting a courtroom where he was attending a session.
On Tuesday, January 28, Kairo appeared before Milimani Chief Magistrate Lucas Onyina for the mention of one of his numerous fraud cases and had left the courtroom at Milimani Law Courts when detectives intercepted him.
The re-arrest came as police indicated that they were investigating claims related to his car business. He was reportedly placed in a police vehicle, and driven to an undisclosed location. Officials said he was taken to the DCI headquarters along Kiambu Road for questioning.
While the exact reason for his rearrest was not immediately clear, it is alleged that it was linked to complaints about his alleged failure to honour agreements with clients.
Khalif Kairo posing next to a Porsche Cayenne. /KHALIF KAIRO
The businessman, through his lawyer Davidson Makau, had earlier requested the release of his passport to facilitate his travel to the United States (US) for a seven-day fundraiser.
The prosecution, however, opposed the application, arguing that Kairo must first provide detailed information regarding his travel plans, including the intended departure date before the court could make a decision. In response, Magistrate Onyina directed that the matter be mentioned again on January 31, 2025, to allow Kairo time to submit documents supporting his request.
In his defence, Kairo attributed the ongoing struggles in his business to external challenges and limited access to capital, rather than malicious intent. “We are struggling with vehicle deliveries not because we ‘stole’ money but because it’s a combination of many factors, including external sabotage, aggressive growth, and limited access to capital. It does happen to a lot of start-ups, but I am confident we have found a solution,” he remarked.
The car dealer also pointed out the stiff competition in the automotive industry, emphasising that many of his competitors benefit from substantial financial backing, saying “We are competing with companies funded by VCs, others by proceeds of illicit money, and others owned by people who have been in the industry for decades. Despite those odds, we still made it here. I believe with the right funding and support, we can do even better.”
Kairo also addressed public concerns over a fundraising campaign linked to his company, distancing it from claims of directly soliciting funds from Kenyan investors. According to him, the firm registered in the United States (US) is governed by Securities and Exchange Commission (SEC) regulations, allowing global investment, and is reportedly seeking funds under Regulation Crowdfunding through a US-based platform.
He emphasized the campaign is in a “testing the waters” phase to assess interest, with no money or commitments being solicited or accepted prematurely. He further assured that any potential investments could only be made through the platform and would adhere to SEC rules.
Despite these assurances, critics have raised concerns about the company’s transparency, investor fund management, and potential risks tied to the venture. Some fear the campaign could lead to exploitative practices under unclear terms.
Kairo was this month charged with failing to honour car sale agreements. He faces two separate charges of cheating contrary to section 315 of the penal code. For each of the charges, the court granted him a cash bail of Ksh1 million with an alternative of a bond.
According to one of the charges, Kairo on diverse dates between July 10, 2024, and July 25, 2024, at Westlands employing fraudulent tricks allegedly induced one of his clients to pay him Ksh2.1 million, allegedly paid to him through his company Kai & Karo Limited for the importation of a Honda Vezel hybrid from Japan which the charge sheet indicated that he never delivered.
He allegedly committed the same offence against another client, with the charge sheet claiming that the client transferred Ksh2.98 million into Kai and Karo Limited’s bank account.
Khalif Kairo with a superbike. /KHALIF KAIRO