On 19 January 2023, the Cabinet Secretary for the National Treasury and Economic Planning made The Income Tax (Financial Derivatives) Regulations, 2023. These Regulations are intended to provide a taxation framework for gains made from financial derivatives traded in Kenya. With the introduction of these Regulations, multiple questions have risen regarding the nature of financial derivatives that befall the taxman's scope. CDH Kenya Partners, Alex Kanyi and Martha Mbugua provide some clarity on the taxation of gains from financial derivatives in Kenya and the implications to taxpayers.