Khalif Kairo, the proprietor of a car dealership, recently faced public scrutiny after his company failed to deliver cars to several clients. The entrepreneur, who is facing two charges of cheating under Section 315 of the Penal Code, took to social media to clarify the situation and explain why the delivery delays occurred.
In a candid post on X (formerly Twitter), Kairo emphasized that the issues were not due to dishonest practices, as some may have assumed. He outlined that the root causes of the delays stem from a combination of factors, including external sabotage, rapid business growth, and limited access to capital. “We are struggling with vehicle deliveries not because we ‘stole’ money but because it’s a combination of many factors,” Kairo explained, underscoring the challenges faced by startups in scaling operations. Despite these hurdles, he expressed confidence that a solution has been found and that the company is committed to resolving the issues.
Kairo also revealed plans to open up his company to potential investors in order to raise the necessary capital for expansion. By launching a crowdfunding initiative on the platform kaiandkaro.com, Kairo is seeking to tap into the growing trend of collective investment. “Crowdfunding essentially means we are taking as little as USD 100 from investors willing to risk and bet on us,” he stated. This model, introduced in the US around 2012, allows small investors to contribute to a company in exchange for future equity once the company matures.
While the crowdfunding initiative may sound promising, questions have arisen around its legality and whether the Capital Markets Authority (CMA) has approved the venture. In response to a query from an online user, Kairo clarified that the fundraising is not being conducted within Kenya but rather through a US-registered entity. “We are not channeling funds directly from the public into a Kenyan company; the entity raising money is a US-registered corporation,” he explained, referring to Flex_Mobi, the company’s US branch. He assured potential investors that the fundraising efforts are governed by the Securities and Exchange Commission (SEC) in the United States, not the Kenyan regulatory body.
Kairo added a disclaimer for those considering investment, stating that the company is currently “testing the waters” to gauge investor interest and that no money would be accepted until the formal regulatory process is complete. “No offer to buy securities will be accepted until a Form C is filed,” he clarified.
With these efforts, Kairo hopes to overcome the financial constraints that have hindered his business’s growth and deliver on his promise to clients.
