City car dealer Joseph Kairo Wambui, also known as Khalif Kairo, who was charged with obtaining money fraudulently for the importation of high-end vehicles, has launched a plan to raise at least $2 million (approximately Ksh258 million) in funding.
On January 27, Kairo announced that his company, Kaiandkaro.com, through its newly launched parent company based in the U.S., aims to raise $2 million in seed funding.
Seed funding refers to the initial capital that early-stage startups raise to help them launch and develop their businesses.
It is typically the first round of investment a company seeks, often before it has fully developed its product or established a strong revenue stream.
According to Kairo, the decision to raise funds followed “teething cash flow issues that have affected delivery timelines for imported used vehicles, threatened our public goodwill, and limited our growth.”
The business dealer further shared the platform under which he plans to raise the funds through Regulation Crowdfunding (Reg CF).
“Kaiandkaro.com ’s US-based parent company Flex Mobility seeks to raise 2M USD in seed funding. This is a good investment opportunity and apart from the significant financial benefits, you will be investing in the future of Africa and improving the lives of many through affordable mobility,” reads an overview of Kairos’s Reg CF platform.
Reg CF refers to a set of rules created by the U.S. Securities and Exchange Commission (SEC) in 2015 under the JOBS (Jumpstart Our Business Startups) Act.
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These rules allow businesses, especially startups and small businesses, to raise capital by selling securities (equity, debt, or other types) to a large number of investors via online crowdfunding platforms.
Kairo seeks to raise $2 Million
Fundraising must take place through an SEC-registered online platform, such as Wefunder, StartEngine, or SeedInvest, which acts as a middleman to facilitate the process and ensure compliance with the rules.
“We are ‘testing the waters’ to gauge investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed, and only through Wefunder’s platform. Any indication of interest involves no obligation or commitment of any kind,” said Khalif Kairo in an update.
He also claimed that the company had received around Ksh1.5 million in commitments from investors within two hours.
A spot check by The Kenya Times on the SEC-registered online platform hosting KaiandKaro.com‘s crowdfunding provided an overview of the company’s progress.
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The company asserts that its website attracts between 4,000-10,000 daily users, and with the right resources, it aims to sell more products, create additional services, and permanently solve the problem of mobility in Africa.
Furthermore, the firm explains that despite the impressive initial traction, limited funding and access to growth capital threaten to hinder its vision for expansion.
At the time of publication, the fundraiser had raised a total of $40,889 (approximately Ksh5.3 million).
Arrest and arraignment
The new move by Kairo came after the car dealer was arraigned at the Milimani Law Courts on Monday, January 13, on charges of defrauding the clients of Ksh2.1 million and Ksh2.9 million, respectively.
The court heard that Kairo had been apprehended on January 11, 2025, and stayed in custody before he was presented for arraignment.
In the ongoing case, Kairo is accused of obtaining Ksh2.9 million from ‘through a fraudulent trick, claiming to be in a position to import a Subaru Outback vehicle.
The incident occurred in July of last year, and detectives said the car has yet to be delivered despite being paid in full.
In another incident, the businessman is accused of deceiving Jeff Kyule Munane between July 10 and July 29, 2024, in Westlands, Nairobi.
The alleged scheme involved his company, Kai & Karo Limited, collecting Ksh2,145,150 under the pretense of facilitating the importation of a Honda Vezel Hybrid vehicle from Japan, which was never delivered.
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