I'm new to both Kha and Android development.
I cloned Empty template project and ran 'node Kha/make android-native'. Then I've installed Android Studio 2.1.2 and opened project from folder 'build\android-native-build\Empty'.

And now I'm getting an error: 'The project is using an incompatible version of Android Gradle plugin'. It tries to update Android Gradle plugin to version 2.1.2 but fails.

What does all this mean?

Means Android Studio 2.1.2. fails to load a project which was created for a slightly earlier version of Android Studio. Update incoming...

Before the update is ready, it is possible to use previous version of Android Studio: http://tools.android.com/download/studio/builds/1-5-2

I also found that everything works only with JDK 1.7, not 1.8. http://www.oracle.com/technetwork/java/javase/downloads/jdk7-downloads-1880260.html

Done. From now on exports projects for Android Studio 2.1.2.