Silverstone Air has notified its pilots and crew members of a possible redundancy exercise.
The troubled airline said it has been incurring Sh7 million loss every day its fleet remains grounded as it seeks to comply with Kenya Civil Aviation Authority directive.
The announcement to fire staff comes barely a week after KCAA suspended its Dash-8 fleet from flying for seven days to allow inspection.
The KCAA order was issued following a series of mishaps, including a tyre falling off one of their planes during take-off and plane skidding off the Wilson Airport runway.
Silverstone assured their clients that they are not exiting the market, but have only cancelled flight operations.
The airline said that it will reimburse affected passengers
The latest incident involving Silverstone Airlines occurred on October 28 when a rear tyre fell off the plane as it was taking off from Lodward Airstrip.