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National Treasury Cabinet Secretary John Mbadi has revoked the appointment of Seth Panyako from the Local Authorities Provident Fund (LAPFUND) board, effective immediately.
In a gazette notice dated Friday, January 23, CS Mbadi revoked Panyako’s appointment as a member of the LAPFUND board, which began in March 2023 under former Treasury CS Njuguna Ndung’u.
He cited his authority under Section 5(1)(d) of the LAPFUND Act, signaling a shift in the fund’s leadership as the current administration continues to reorganize key state agencies.
“In exercise of the powers conferred by section 5 (1) (d) of the Local Authorities Provident Fund Act, as read together with section 51 (1) of the Interpretation and General Provisions Act, the Cabinet Secretary for the National Treasury and Economic Planning revokes the appointment of— Seth Sindani Panyako as a Member of the Local Authorities Provident Fund Board, with effect from the 23rd January, 2026,” part of the notice read.
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Context of the Departure
Seth Panyako, who is also widely known for his prominent role as the Secretary-General of the Kenya National Union of Nurses (KNUN), has been a vocal figure in labor relations and public sector management.
His termination from the board comes weeks after he was defeated by David Ndakwa of the United Democratic Alliance (UDA) in the November 27, 2025, by-elections for the Malava Parliamentary seat.
With 21,564 votes overall, Ndakwa defeated Panyako, the DAP-Kenya candidate, who received 20,210 votes in the fiercely competitive mini-elections.
What is LAPFUND?
LAPFUND is a Defined Contribution Scheme registered and regulated by the Retirement Benefits Act of 1997 and Subsequent Regulations. It is a State Corporation established in 1960 by an Act of Parliament, Cap. 272, Laws of Kenya and operate in accordance with the County Governments Act 2012 (section 132).
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LAPFUND caters to all employees of County Governments and Water Companies, where Members contribute 12% while the Sponsors contributes 15% of the Member’s gross salary (basic salary plus house allowance).
Having been established in 1960, LAPFUND is one of the oldest retirement benefits schemes in Kenya.
Currently, LAPFUND enjoys a membership of over 78,000 members spread over all County Governments and Water & Sewerage Companies.
It is responsible for managing the retirement savings of employees from various water companies, county governments, and associated semi-autonomous government agencies.
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Malava by-election DAP-K candidate Seth Panyako. PHOTO/FILE.
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