Seth Panyako Loses Government Position

Trade unionist and politician Seth Panyako has been dropped from his role on the Local Authorities Provident Fund (LAPFUND) Board following fresh changes within President William Ruto’s administration.

The decision was confirmed on Friday, January 23, by Treasury Cabinet Secretary John Mbadi, who announced that Panyako’s appointment had been revoked with immediate effect.

According to an official notice from the National Treasury, the move was made under Section 5 of the Local Authorities Provident Fund Act, which gives the Cabinet Secretary the authority to appoint or remove members of the LAPFUND Board.

“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 stated.

No explanation was provided regarding the reasons behind the decision.

Panyako, who also serves as the Secretary-General of the Kenya National Union of Nurses (KNUN), was appointed to the board in March 2023 by former Treasury Cabinet Secretary Njuguna Ndung’u.

LAPFUND is responsible for collecting, investing, and managing pension contributions from both employees and employers, intending to secure retirement benefits for workers under local authorities.

His exit comes amid continued changes within state-linked institutions as the government pushes forward with reforms across various ministries and agencies.

During his time on the board, Panyako faced public criticism and legal threats from some quarters over his decision to contest the Malava parliamentary seat while still holding a senior position linked to government operations.

In response, he previously argued that LAPFUND does not qualify as a state corporation and maintained that his role as a workers’ representative did not make him a public officer.

The development also follows his recent political setback. In the Malava parliamentary by-election held on November 27, 2025, Panyako lost to United Democratic Alliance (UDA) candidate David Ndakwa.

Ndakwa secured 21,564 votes, while Panyako, who was running on a DAP-Kenya ticket, came second with 20,210 votes in the closely contested race.