The auctioneer’s hammer is hovering over two of Kenya’s most prominent families. In a dramatic unraveling of a corporate deal gone wrong, Sheila Murugi, daughter of the late powerhouse minister John Michuki, and Bootsy Mutiso, a former Kenya Airports Authority board member, are facing the humiliation of auction over a debt they thought they had left behind.

The saga centers on the sale of Flex Air Charters Ltd, an aviation firm the duo co-owned before selling it to Namanga Aviation Ltd in July 2020. What was meant to be a clean exit has turned into a legal nightmare. A Milimani Chief Magistrate’s court has stripped away their corporate veil, labeling them "invisible debtors" and ordering them to pay millions in accrued debts. The ruling is a chilling precedent for corporate Kenya: you can sell the company, but you cannot sell your sins.

The Privately Struck Deal

The devil was in the details. When Murugi and Mutiso sold their stake, the share purchase agreement included a specific, private clause: the sellers would retain liability for any debts accrued prior to the July 2020 handover.

Three years later, the skeleton in the closet rattled. Lady Lori, a helicopter charter firm, came knocking for $39,794 (Sh5.13 million)—a debt that had accumulated between 2018 and early 2020, squarely under the tenure of Murugi and Mutiso. The new owners, Esther and Nicholas Njoroge of Namanga Aviation, refused to pay, pointing to the contract. The court agreed, ruling that the former owners could not hide behind the new shareholders.

The Fall of the Titans

The case exposes the fragility of reputation in the high-stakes world of Kenyan business.

• The Legacy Risk: For Sheila Murugi, the case is a public embarrassment, dragging the revered Michuki name into a debt recovery row. It highlights the often messy reality of second-generation wealth management.
• The Corporate Veil Pierced: The court’s decision to pursue them personally, rather than just the company entity, sends a shockwave through boardrooms. It validates the concept of "invisible debtors"—owners who exit a sinking ship but are still liable for the leaks.
• The Auction Threat: With the debt unpaid, the specter of auctioneers descending on their personal properties is real. It is a stark reminder that in contract law, a signature is a shackle.

A Cautionary Tale

This is more than a commercial dispute; it is a morality play about accountability. Murugi and Mutiso attempted to wash their hands of Flex Air Charters, but the ink on their exit deal has refused to dry.

As they scramble to settle the debt and save face, the message to Kenya’s elite is unequivocal: The past has a receipt, and eventually, everyone has to pay.