Treasury Cabinet Secretary John Mbadi has terminated the appointment of trade unionist Seth Panyako to the Local Authorities Provident Fund Board, bringing an abrupt end to a tenure that began under the previous administration.
The revocation, formalized through a Gazette Notice dated January 23, became effective immediately, removing Panyako from the board responsible for managing retirement benefits for thousands of county government employees across Kenya.
Mbadi invoked powers granted under section 5(1)(d) of the Local Authorities Provident Fund Act, combined with section 51(1) of the Interpretation and General Provisions Act, to execute the decision. The legal provisions give the Treasury chief broad authority over board appointments and removals.
The official notice offered no explanation for the decision, leaving questions unanswered about what prompted the move against a board member who had served for nearly three years.
Panyako originally secured his position in March 2023 when then-Treasury CS Njuguna Ndung’u appointed him through Gazette Notice No. 3666. His removal marks one of the first significant board reshuffles under Mbadi’s leadership at the Treasury.
The Local Authorities Provident Fund Board plays a crucial role in Kenya’s social security architecture, overseeing retirement savings for employees of county governments and defunct local authorities. The fund manages contributions and benefits for workers who dedicated their careers to public service at the grassroots level.
Trade unionists typically bring worker advocacy perspectives to such boards, balancing technical expertise with on-the-ground understanding of employee concerns. Panyako’s background in labor organizing positioned him to represent employee interests in fund management decisions.
The timing of the revocation, coming early in 2026, suggests a broader realignment of parastatals and statutory boards under the current administration. President William Ruto’s government has systematically reconstituted various boards since taking office, citing the need for fresh leadership and improved governance.
Neither the Treasury nor Panyako has issued public statements regarding the removal. The board will continue operating while the Treasury determines whether to fill the vacancy or restructure its composition entirely.
County government employees will be watching closely to see who replaces Panyako and what direction the reconstituted board takes on retirement benefit policies.
