NAIROBI, Kenya — The Employment and Labour Relations Court has upheld the dismissal of a former Carrefour Kisumu store manager after finding that he breached the retailer’s code of ethics by accepting Sh40,000 from one of the supermarket’s suppliers.
In a judgment delivered on July 31, the court ruled that Majid Al Futtaim Hypermarkets Limited, which operates Carrefour stores in Kenya, had valid grounds to summarily dismiss the employee after internal investigations established that he had received two separate Sh20,000 payments from a director of a company supplying cosmetic products to the retailer.
The former manager had challenged his dismissal, arguing that his termination was unfair and seeking more than Sh5 million in compensation and employment-related benefits. However, the court dismissed his claim, finding that the company had acted lawfully and followed due process during the disciplinary proceedings.
In her ruling, the judge held that the employee had violated Carrefour’s Code of Ethics, which expressly prohibits staff from receiving personal benefits arising from relationships with suppliers.
“The claimant clearly breached the code of ethics in accepting money from the respondent’s supplier,” the court said, noting that employees must not derive personal gain from business relationships maintained by their employer.
During the proceedings, evidence presented before the court included mobile money transaction records showing two payments of Sh20,000 each from the supplier’s director.
Although the supplier reportedly described the transfers as friendly gestures, the court found that the explanation did not alter the nature of the payments, given the existing commercial relationship between the supplier and Carrefour.
The court further found that Carrefour had complied with the Employment Act by issuing a notice to show cause, conducting investigations, convening a disciplinary hearing and allowing the employee to appeal the decision before his dismissal.
The judge concluded that the retailer had both substantive and procedural justification to terminate the employee’s contract.
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While dismissing the unfair termination claim, the court directed Carrefour to settle any outstanding terminal dues that had been admitted, with each party ordered to bear its own legal costs.
Court records show the former manager joined Carrefour in 2016 before rising through several management positions. He later became the opening store manager of the retailer’s Kisumu branch in 2021.
His employment came to an end in March 2022 after the internal investigation concluded that he had received money from a registered supplier, contrary to the company’s ethics policy.
The judgment is expected to reinforce the importance of corporate governance and conflict-of-interest policies in Kenya’s retail sector, with the court affirming that employers are entitled to discipline staff who compromise ethical standards governing supplier relationships.
