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Khalif Kairo Acquitted Fraud Case, Refunds Sh5.9 Million

Khalif Kairo’s acquittal in the fraud case has brought relief to the flamboyant Kenyan car dealer after Milimani Law Courts cleared him of two serious charges on September 15, 2025, following his refund of KSh 5.9 million to aggrieved customers who then withdrew their complaints.

Joseph Kairu Wambui, popularly known as Khalif Kairo, the high-profile importer behind Kai & Karo Limited, walked free under Section 204 of the Criminal Procedure Code, with his passport returned to resume business operations.

The ruling ends a turbulent chapter marked by undelivered luxury vehicles, though one pending fraud allegation lingers, alongside a settled tax evasion matter, as Kairo vows to rebuild with greater transparency in Kenya’s competitive second-hand car market.

The courtroom victory came after a year of legal battles that began in late 2024, when customers accused Kairo of pocketing payments for high-end imports like BMWs and Mercedes without delivery.

In the dismissed cases, one complainant, Dona Ayalo Okoth, had transferred KSh 2.98 million in July 2024 for a vehicle that never arrived, while another paid a similar sum for a promised luxury ride.

Kairo’s legal team, led by advocates Cliff Ombeta and Danstan Omari, argued the issues stemmed from supply chain delays rather than deception, and the refunds, which totalled the exact amount owed, prompted the complainants to formally retract their statements.

Magistrate Judith A. Okute ruled the cases lacked merit post-withdrawal, a decision that echoed Kairo’s insistence on innocence throughout his arrests, including dramatic detentions at the courts themselves in January and March 2025.

Kairo’s saga has been a rollercoaster in Nairobi’s auto scene, where he built a reputation for flashy online sales and pilot stunts that drew thousands of followers.

From hawking cars at motor shows to facing blacklisting by banks over defaults, his troubles highlighted risks in the imported vehicle trade, where global shortages and customs hurdles often delay deals.

Yet, supporters see the acquittal as vindication; in a post-court statement, Kairo credited his faith, saying, “God has been faithful; now it’s time to deliver excellence.”

He announced plans to relaunch Kai & Karo with stricter client contracts and real-time tracking for orders, aiming to restore trust among buyers eyeing affordable luxury imports from Japan and Dubai.

Social media erupted with messages of support, though critics warn the remaining case, involving another undelivered BMW, could test his comeback. The acquittal also closes a resolved tax fraud probe from earlier this year, where Kairo settled with the Kenya Revenue Authority over alleged evasion in vehicle duties.

Industry watchers note the outcome could stabilise the secondhand car sector, plagued by similar disputes, encouraging dealers to adopt digital verification tools for smoother transactions.

As the Khalif Kairo acquitted fraud case fades into memory, the dealer eyes a fresh start, promising enhanced safeguards for customers in Kenya’s booming auto import business.

With one case still pending, his resilience offers lessons in navigating legal pitfalls, ensuring future deals prioritize delivery and honesty to keep the wheels turning for eager motorists across the nation.

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