Trying to frame the situation from Kyria's perspective.
On the one hand, the ruthlessly pragmatic solution is pretty simple: leave no survivors and frame the bandits for the massacre.
It might be a little evil for Kyria to just come right out and say though. I'm not sure she's that ruthless.
Then again...it kind of fits...
Or we could spare them and still try to make them think we're bandits. One armed human is probably as good as another to them. We can just make mention of getting 'back to the camp' and ride off in that direction, and let the survivors do the math...