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The Home Secretary told a House of Lords committee that the numbers who might come from the east African nation to the UK was 'tiny'.
Northern Ireland Secretary Brandon Lewis resigned, telling the PM that Government requires 'honesty, integrity and mutual respect'. Helen Whately then also quit.
Boris Johnson's allies have now raised the prospect of taking the 'nuclear option' and asking the Queen to dissolve parliament to trigger an election.
In a statement in Downing Street, the PM tried to sound an upbeat tone as he confirmed that his time in office is coming to an end.
The British leader has admitted defeat half-an-hour after a shattering intervention from Chancellor Nadhim Zahawi.