Carbon trading has emerged as a market-oriented solution to mitigate climate change globally. However, there has been a mixed view on its effectiveness and suitability for developing countries such as Kenya. This scoping study critically reviews the policy, legal and regulatory frameworks of carbon trading from a Kenyan perspective. The study examines the challenges and opportunities presented by carbon trading, including environmental and social considerations that have significant implications for local communities in Kenya. The analysis is based on a desk review of literature on climate change, the Kyoto Protocol, and carbon trading, project design documents, and field research reports. The study finds that the Constitution of Kenya (2010) is the legal basis for carbon emissions trading within Kenya, and the government is obliged to sustainably develop and conserve its national resources equitably. The study recommends a range of solutions to improve the carbon market outlook and ensure the private sector's continued incentive to participate in greenhouse gas emission reduction activities in Kenya. These solutions include increasing designated national authority (DNA) activities in Clean Development Mechanism (CDM) promotion activities, providing financial incentives to project owners for investing in underlying projects that reduce or remove GHG emissions and incorporate climate/carbon finance and project development training in university curricula in Kenya.