Businessman Khalif Kairo charged with fraud after failing to deliver cars to clients

Popular car dealer Joseph Kairu Wambui alias Khalif Kairo denied charges of fraud in relation to deals where he failed to deliver motor vehicles to clients after they made payments to his company.

Kairo was charged with two counts of cheating contrary to section 315 of the Penal Code.

In one of the charges, Kairo is accused of inducing Dona Ayalo Okoth to transfer Sh2,984,998 into Kai and Karo Limited's bank account by falsely pretending that he will purchase a Subaru Outback for her.

He is said to have received the payments on July 29, 2024, at an unknown location in Kenya using fraudulent tricks.

In the count, the businessman is accused of receiving Sh2,145,150 from Jeff Kyule which the complainant was paying for the importation of a motor vehicle Honda Vezel from Japan.

Kyule made the payments on diverse dates between July 10 and 29, 2024 at Westlands in Nairobi and the prosecution says Kairo never delivered the vehicle after the payments were made.

He denied the charges before Chief Magistrate Lucas Onyina and claimed through his lawyers led by Danstan Omari, that the cases were orchestrated by jealousy of his business rivals.

Omari said Kairo has been in the car business for 10 years and the problem started after he became an online wizard which has irked the old hands in the auto industry where Khalif is taking over.

The police officer investigating the matter Esther Mburu of the Directorate of Criminal Investigations (DCI) Nairobi Central filed an affidavit to compel the court to remand the businessman during the trial.

In an affidavit filed before the court to oppose the bail and bond, Mburu said she was unable to find physical abode and residence during investigations.

"Upon commencement of the investigations, the accused (Kairo) disappeared and it was only recently that he was traced in separate matter and arrested, where we also availed our file to court, and we are apprehensive that he may abscond the court," stated Mburu in the affidavit.

"It has taken us one month to trace the accused since he went missing immediately after the case was reported to the police officers. As such, there is a very high likelihood that the accused will abscond court."

However, lawyer Cliff Ombeta dismissed the same, saying the charge sheet indicates that a report was made at the police station on January 11, 2025 and was arrested on the same day, adding the period cannot amount to a month.

Omari said Kairo's business empire sold over 300 vehicles last year with a turnover of more than a billion shillings and has permanently employed 28 people and hundreds of others on commission who are at risk of losing jobs if he is denied bail and bonds.

Onyina will make a ruling on whether to release Khalif on bond or not tomorrow, January 14, 2025. In the meantime, he will be detained at the Capitol Hill police station.