The Employment and Labour Relations Court has upheld Carrefour's decision to summarily dismiss a former 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.

According to the judgment, Cornelius Bulimo, who served as Carrefour's Kisumu Store Manager, received two payments of Sh20,000 each from a supplier identified in court documents as Peter Mbui, a director of Miss Beauty Company Limited, which supplied cosmetic products to Carrefour.

The court found that accepting the money created an undisclosed conflict of interest and violated Carrefour's internal Code of Ethics, which prohibits employees from deriving personal benefit from relationships with the company's suppliers. The judge ruled that the employer had established a valid and lawful reason for dismissal.

Bulimo had argued that his dismissal was unfair and claimed he had been victimised following disagreements with his Area Manager. He also alleged discrimination, wrongful suspension, denial of bonuses, unfair disciplinary proceedings and sought more than Sh5 million in compensation and other employment benefits.

However, the court found that Carrefour had followed the required disciplinary process by issuing a notice to show cause, conducting investigations, inviting him to a disciplinary hearing and allowing him to appeal before making the decision to terminate his employment.

While dismissing his claim for unfair termination, the court directed Carrefour to settle any admitted outstanding terminal dues, including accrued leave and prorated salary, if they had not already been paid.

The ruling is not the first time Carrefour has found itself in court over allegations involving supplier relationships.

In 2022, another former Carrefour store manager challenged his dismissal after being accused of receiving Sh50,000 from a supplier. That dispute also revolved around alleged breaches of the retailer's ethics policy concerning conflicts of interest.

Carrefour's dealings with suppliers have also attracted regulatory scrutiny in the past. In 2023, the Competition Authority of Kenya (CAK) imposed a Sh1.1 billion penalty on the retailer over abuse of buyer power, saying it had imposed unfair contractual terms on suppliers. Earlier investigations had also found clauses requiring suppliers to pay listing fees, rebates and other charges before accessing Carrefour's shelves.

The latest judgment reinforces the principle that employers can lawfully dismiss employees who breach internal ethics policies, particularly where undisclosed financial dealings with suppliers create actual or perceived conflicts of interest.