Two company directors were arraigned before the Eldoret Law Courts on charges of tax fraud last week following investigation by the Kenya Revenue Authority (KRA) that uncovered a complex tax evasion scheme amounting to KES290,250,889.

Ms. Jacquelyne Joy Buyanzi, Director of Harmo Engineering and Building Contractors Limited, and Ms. Joan Jepkosgey Misoy, Director of Mistroneux Limited, were charged with evading taxes amounting to KES282,755,785 and KES2,388,306 respectively.

KRA investigations revealed that between August 2014 and December 2019, Harmo Engineering and Building Contractors Limited earned over KES1 billion in income but failed to declare KES756,538,599 in Value Added Tax (VAT) returns and KES441,532,631 in income tax returns—leading to the massive tax loss.

Ms Joan Misoy and Mistroneux Limited was sued for fraudulently omitting inher tax returns income of KES7,961,020 earned between 2021 and 2022. She also failed to declare income amounting to KES18,228,282 earned in her individual capacity during the same period. Investigations established that the government would have lost a total KES5,106,798 in taxes. 

The accused persons appeared before Senior Resident Magistrate Keyne Odhiambo Gweno where they denied all the charges. Buyanzi was granted bond of KES5 Million with alternative cash bail of KES300,000 whereas Misoy was granted bond of KES2 million with alternative cash bail of KES100,000 for the charges against the company and bond of KES2 million with alternative cash bail of KES200,000 for charges relating to her individual taxes. Both cases will be mentioned on 5th May 2025.

If found guilty, the accused persons will be sentenced to a fine of KES10 million or double the taxes evaded, whichever is higher or imprisonment to a term not exceeding 5 years as provided for by the Tax Procedures Act, 2015. 

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