Two directors were on 23rd April 2025 charged before Eldoret Law Courts with tax fraud after an extensive investigation by Kenya Revenue Authority (KRA) unearthed an elaborate scheme to evade payment of taxes totalling Ksh290,250,889.
Ms Jacquelyne Joy Buyanzi, the director Harmo Engineering and Building Contractors Limited and Ms Joan Jepkosgey Misoy, the director Mistroneux Limited were charged with tax fraud amounting to Ksh282, 755,785 and Ksh2,388,306.
Investigations established that between August 2014 and December 2019 the Harmo Engineering and Building Contractors Limited had earned over one billion shillings in income but omitted declaration of Ksh756,538,599 in the VAT returns and Ksh441,532,631 in the income tax returns resulting in evasion of Ksh282, 755,785.
For her part, Ms Joan Misoy and Mistroneux Limited, fraudulently omitted in her tax returns income of Ksh7,961,020 earned between 2021 and 2022. She also failed to declare income amounting to Ksh18,228,282 earned in her individual capacity between 2018 and 2022. Investigations established that the government would have lost a total Ksh5,106,798 in taxes.
The accused persons appeared before Senior Resident Magistrate Keyne Odhiambo Gweno where they denied all the charges. Buyanzi was granted bond of Ksh5 million with alternative cash bail of Ksh300,000 whereas Misoy was granted bond of Ksh2,000,000 with alternative cash bail of Ksh100,000 for the charges against the company and bond of Ksh2,000,000 with alternative cash bail of Ksh200,000 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 Ksh10,000,000 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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