Fly540, the low-cost carrier launched in 2006, was placed under receivership on August 4, 2026 after Chase Bank Kenya Limited moved to recover outstanding debts. The appointment puts the airline's assets, operations and financial affairs under a receiver's control. For passengers and creditors, the practical effect is that decisions now sit outside the airline's usual management structure.
Fly540 and Nixon Ooko
Nixon Ooko, the Fly540 co-founder, recently drew renewed public interest after his death. The airline's early branding came from its introductory fare of KSh5,540 for flights between Nairobi and Mombasa, and it later expanded across Kenya and into Uganda, Tanzania, Angola and Ghana.
That early growth gave way to a long run of disputes. Fly540 became embroiled in legal cases involving shareholders, creditors, tax authorities, aircraft lessors and former employees, while The Kenya Revenue Authority pursued the airline over alleged unpaid taxes running into hundreds of millions of shillings.
Chase Bank Kenya Limited action
Avmax Aircraft Leasing Inc. and Wells Fargo Trust Company National Association also took legal action against Fly540 and East African Safari Air Express over claims amounting to approximately KSh775 million. Passengers complained about delayed flights, cancellations and difficulties obtaining refunds, adding another layer of pressure on the airline before the receivership move.
Fly540's Air Operator Certificate expired in September 2022, stopping commercial flights and leaving the carrier with shrinking operations before the August 4, 2026 receivership. The open question now is who was appointed receiver and what immediate steps will be taken with Fly540's operations.
