while using the his kai ability, can the kensai continue attacking? or is he too tied up using the kai ability to fight?

You do need to attack in order to use the Kai ability, Kai is basically an attacking bonus that last for 10 sec and enabling all damages to be maximized. If you don't attack while Kai is on, you are wasting it.

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Long live H22A1!!!!!

but it maximizes the damage done by the ENTIRE party, right?

do you even know what kai is??

No it only maximises his own damage.
250 I think he thought the party damage would be maximised and maybe the Kensai needed to focus on that instead of fighting. So yes, he knows what kai is, just not exactly how it works

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Melusine, Archbabe of the OHF and the LH
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Your voice is ambrosia

Unfortunately, Kai is not like the paladin's aura ability in Diablo 2 (where the whole party shares the benefit), Kai ONLY benefits the Kensai himself/herself.

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Long live H22A1!!!!!

Thanks. I actually thought it was more like the Bard Song (cant fight while using it but affected entire party)due to the following reference.

Excerpt from Kensai subsection of Fighter Character Creation section in the Official BGII Perfect Guide:

Advantages:
--May use Kai ability one time per day for every 4 levels (lasts 10 seconds and makes all attackers do maximum damage-very, VERY useful!)

regular use of the kai ability tears enemys of any kind apart