CS Mbadi Fires Seth Panyako From Provident Fund Board
Unionist and politician Seth Panyako has been removed from his position as a member of the Local Authorities Provident Fund (LAPFUND) Board in a move that adds to ongoing changes within President William Ruto’s administration.
Treasury Cabinet Secretary John Mbadi formally revoked Panyako’s appointment on Friday, January 23, through a gazette notice that took immediate effect. The decision was made under provisions of the Local Authorities Provident Fund Act, which grants the Treasury CS powers to appoint and dismiss board members.
“In exercise of the powers conferred by section 5 (1) (d) of the Local Authorities Provident Fund Act, the Cabinet Secretary for the National Treasury revokes the appointment of Seth Panyako as a Member of the Local Authorities Provident Fund Board,” the notice read in part.
While confirming the revocation, Mbadi did not provide reasons for Panyako’s removal, leaving room for speculation about the circumstances surrounding the decision. The Treasury has also not indicated whether a replacement will be named immediately or whether further changes to the board are planned.
Panyako, a prominent trade unionist and the Secretary-General of the Kenya National Union of Nurses (KNUN), was appointed to the LAPFUND board in March 2023 by former Treasury Cabinet Secretary Njuguna Ndung’u. His appointment was seen at the time as part of efforts to include workers’ representatives in institutions overseeing pension and retirement benefits.
LAPFUND is mandated to receive, invest, and manage contributions from employees and employers within local authorities and related entities, with the aim of providing members with a secure financial base upon retirement. The board plays a critical role in overseeing governance, investment decisions, and compliance within the fund.
Panyako’s tenure on the board, however, was not without controversy. Questions had previously been raised about his eligibility to serve on the board while actively engaging in partisan politics. The debate intensified when he declared his intention to vie for the Malava parliamentary seat, prompting threats of legal action from a section of the public.
At the time, Panyako defended his position, arguing that LAPFUND was not a state corporation and that his role as a workers’ representative did not amount to holding a public office. He maintained that his political ambitions did not conflict with his responsibilities on the board.
The latest development comes weeks after Panyako lost the Malava parliamentary by-election held on November 27, 2025. The contest was closely fought, with United Democratic Alliance (UDA) candidate David Ndakwa emerging victorious after garnering 21,564 votes. Panyako, who ran on a DAP-Kenya ticket, finished second with 20,210 votes.
Political analysts note that the revocation follows a broader pattern of adjustments within state-linked boards and institutions as the government continues to realign leadership in key agencies. The administration has maintained that such changes are aimed at improving efficiency, accountability, and alignment with policy priorities.
So far, Panyako has not publicly commented on his removal from the LAPFUND board. It also remains unclear whether the decision will have any bearing on his future involvement in trade union leadership or elective politics.
As reforms across state institutions continue, attention is likely to focus on how appointments and dismissals are handled, particularly where individuals straddle the line between public service, union leadership, and active politics.
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CS Mbadi Fires Seth Panyako From Provident Fund Board
