Breaking: Seth Panyako Fired From Government Role as LAPFUND Board Member
Trade unionist and politician Seth Panyako has been removed from his position on the Local Authorities Provident Fund (LAPFUND) Board, marking the latest change within President William Ruto’s administration.
The decision was announced by Treasury Cabinet Secretary John Mbadi on Friday, January 23, who confirmed that Panyako’s appointment had been revoked with immediate effect. The announcement was made through an official notice issued by the National Treasury.
According to Mbadi, the revocation was carried out under Section 5 of the Local Authorities Provident Fund Act, which grants the Treasury Cabinet Secretary the authority to appoint and dismiss members of the LAPFUND Board.
In the notice, Mbadi stated that he was exercising powers provided under Section 5 (1) (d) of the Act to cancel Panyako’s appointment as a board member.
While the dismissal took effect immediately, the Treasury CS did not give any specific reasons for Panyako’s removal from the board, leaving room for speculation over the move.
Seth Panyako, who is also 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 as part of efforts to include workers’ representatives in key institutions that manage employees’ retirement benefits.
LAPFUND plays a critical role in managing pension contributions by receiving, investing, and safeguarding funds from both employees and employers to ensure financial security after retirement. As such, board membership is considered a sensitive and influential position.
Panyako’s time on the board was, however, surrounded by controversy. At one point, a section of Kenyans threatened legal action after he declared his intention to contest the Malava parliamentary seat while still serving in the LAPFUND Board.
Critics argued that holding a government-linked position while running for elective office raised ethical and legal concerns.
In response, Panyako defended himself by insisting that LAPFUND is not a state corporation. He also maintained that his role on the board was as a workers’ representative, arguing that this did not make him a public officer as defined by law.
His removal now comes amid wider changes taking place across state agencies and boards, as the government continues to restructure and reform key institutions within different ministries.
The development also follows Panyako’s recent political setback. He lost the Malava parliamentary seat to United Democratic Alliance (UDA) candidate David Ndakwa in the by-election held on November 27, 2025.
Ndakwa won the closely contested race with 21,564 votes, while Panyako, who was running on a DAP-Kenya ticket, came second with 20,210 votes.
With his exit from the LAPFUND Board, Panyako’s future role in public service and politics is now likely to attract renewed public attention as changes within government institutions continue to unfold.
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