This study sought to determine the effect of trading in foreign exchange on trade finance income among commercial banks in Kenya. Hence, the unit of analysis for the research were all the registered and fully operational 39 commercial banks in Kenya. The participants for the study were each trade finance manager for the 39 commercial banks. Data was collected using structured questionnaire which were distributed through the emails and followed by telephone calls from the researcher in order to expedite the response process. These resulted in a response rate of 77%, which is considered good enough for such a study. The research adopted a descriptive research design with data being analysed using the statistical package for social sciences ( SPSS) and the results represented as percentages, mean, median and variances. The study’s inferential analysis, which included correlation analysis and regression analysis, led to the conclusion that there is a significant correlation between trading in foreign exchange and trade finance income. Based on these conclusions, commercial banks are advised to concentrate on trade financing and trade facilitation since foreign exchange will be required at the time that settlement must be carried out. Banks should be aware that fees gained from trading in foreign exchange are in addition to whatever fees they may have earned from other trade finance activities