Experts generally agree that increased greenhouse gases in the atmosphere will result in changes in climate. Increased attention by policy makers to this threat of climate change has brought with it considerable attention to the possibility of using forests as a means of sequestering and reducing emissions of carbon dioxide in the atmosphere. Forestry is an important sector in Kenya. Long term development of the forestry sector will affect the future amounts of carbon sequestration and emission of the country. The purpose of this study was to provide an understanding of the role that Kakamega forest can play in the mitigation of climate change. It confirms the huge atmospheric carbon dioxide that can be offset by the Kakamega forest, indicating the potential of Kenya to participate in carbon trading for both its economic and environmental benefit. The results can expedite policy decisions regarding Kenya''s participation in carbon trading through the CDM as well as providing benefits to the national forestry sector, and participants in the community forestry, in terms of an overall increase in income, and achieving self-sufficiency.