Troubled Silverstone Air plans to sack all its employees after the civil aviation regulator grounded its fleet.
In an internal communication, the firm has notified its employees of a possible redundancy on grounds that it was incurring huge losses following the directive by Kenya Civil Aviation Authority (KCAA) to ground its Dash 8 fleet.
This will be another blow to the firm that was promising to be the next domestic flight operator in the country taking on Kenya Airways' budget carrier Jambojet, Fly540, and a host of other small local airlines.
Trouble for Silverstone started on October 11, when its aircraft (5Y-IZO) that was departing for Lamu crashed at Wilson Airport.
It had five crew and 50 passengers. There were no fatalities.
The airline was involved in another incident on October 27 when its other aircraft (5Y-SMT) clipped an EASAX aircraft at the ramp at Wilson Airport.
But the last straw may have come on October 28, when its other aircraft (5Y-BWG) lost a wheel on take-off from Lodwar.
The aircraft made an unscheduled landing at the Eldoret International Airport where it had been diverted.
This forced KCAA into action, suspending it from operations.