Gor Mahia on Wednesday failed in their bid to reach the quarter-finals of the Caf Confederation Cup after losing 2-1 away to USM Alger at the 5th July Stadium in Algiers, Algeria in their final preliminary match.
Goals from Prince Ibara and Amis Sayoud propelled the hosts to victory as they finished top of group D with 11 points, with Rayon Sports grabbing second spot after a 1-0 win over Yanga at home to finish on nine points and seal the final quarter-final slot.
The lanky Caleb Bimenyimana, who scored when Rayon beat Gor in Nairobi last week, netted the all-important goal in this match.
K'Ogalo finished third in the pool with eight points and miss out on a last eight berth.
Jacques Tuyisenge pulled a goal back for Gor but it proved to be too late as the Algerians held on for the win.
The Kenyan champions will rue their loss against Rayon on August 18 in Nairobi in a match that they only needed a point from to confirm their place in the group stages with a game to spare.
A point against USM would have seen Gor go through ahead of Rayon on goal difference.
As expected, K'Ogalo began the match on the back foot in the wake of a myriad of attacking moves from the hosts and at some point had to thank reserve goalkeeper Fredrick Odhiambo for stopping a ninth-minute Ahmed Koudri penalty, which was awarded after Harun Shakava appeared to handle in the box.
Ibara would, however, hand his side the lead on 36 minutes, after escaping his markers to power a header past a stranded Odhiambo from a corner kick.
The Kenyan side also survived a scare towards the end of the half when Ernest Wendo was forced to clear a goal-bound shot off the line with Odhiambo well beaten.
Backed by a noisy crowd at their backyard, Alger came back forcefully in the second half, and added the second goal against the run of play.
As a result, Gor, who earned Sh27.5 million in prize money for making it to this stage of the competition, have missed an extra Sh8 million reserved for the eight teams which make it to the quarters.
The tournament's winning team will pocket Sh125 million.
Gor, who clinched the 2018 Kenyan Premier League title with six matches to spare last weekend, will now turn their attentions to the FKF SportPesa Shield, where they take on Kariobangi Sharks at the Kenyatta stadium in Machakos on Saturday.