Shujaa, the national rugby7s side dropped to Challenge Trophy following their loss to Argentina at the ongoing Rugby World Cup in Cape Town, South Africa.
The Damian McGrath side beat Tonga to qualify into the best of 16 .
But two sin bin on Johnstone Olindi and Samuel Oliech made it easy for Argentina to shine.
Vincent Onyala brought Shujaa back into the game after restart with a try but Oliech, who added the extras was sin-binned.
Alejo Lavayen then scored off the penalty as Santiago Vera Feld converted to send the Pumas to the quarter-finals.
Kenya will now play Scotland in the Challenge Trophy quarter-finals on Saturday at 1.37pm.
It’s the defending champions New Zealand, who bundled out Scotland 43-5 in the other round of 16 duel.
Ireland stunned the 1993 champions England17-5 to reach the quarter-finals alongside Samoa, who stopped the United States of America 40-12.
France edged out Canada 19-12 to sail through to the quarter-finals where they will face Australia, who tossed out Uruguay 35-0.
The 1997 and 2005 champions Fiji were to play Wales with the 1997 losing finalists South Africa taking on Chile in the other round of 16 matches