Occured here today. Running this simple command to remove old kernels
and unused packages worked around the issue:

sudo apt-get autoremove --purge

Alternatively, and to be able to remove even manually installed kernels, you 
could use:
sudo purge-old-kernels

To be able to use purge-old-kernels you may need to first install the the byobu 
package by running:
sudo apt-get install byobu

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  update-initramfs should produce a more helpful error when there isn't
  enough  free space

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