Implementing Payments for Ecosystem Services and its Impact on Community Livelihoods: A Case of Nyamwamba Sub-Catchment, Kasese District, Uganda

Payments for Ecosystem Services (PES) is an innovative, incentive-based approach to natural resource management, where users of ecosystem services compensate landowners who protect, enhance, or restore these services through their land management decisions. The study on PES and livelihood improvement was guided by three objectives. That is, to: assess the implementation mechanisms for PES; determine the effect of PES on livelihood improvement; and explore the relationship between PES implementation and ecosystem improvement. A cross-sectional research design incorporating both quantitative and qualitative methods was used for the study. A total of 207 respondents participated in the research project. Data were collected using a semi-structured questionnaire and interview guides. The information collected were analyzed using a statistical package for social sciences, version 22. The study found that PES implementation mechanisms included reforestation, biodiversity conservation, soil and water conservation measures, agroforestry, and forest landscape restoration. PES improved livelihoods, enabling households to pay school fees for their children, establish better housing facilities, managed food crises, accumulated savings, and covered medical expenses for the household members. A significant relationship was found between PES implementation and ecosystem improvement, with enhancements in community livelihoods at P<0.001, flood control and disaster risk reduction at P=0.001, soil loss and erosion reduction at P=0.003, water resources management at P=0.003 and conserved biodiversity at P=0.005. The study recommends implementing robust monitoring and evaluation systems to track PES program impacts on livelihoods in the Rwenzori region. It also highlights the need for fostering partnerships between government agencies, NGOs, local communities, and other stakeholders involved in PES initiatives. Training and capacity-building programs should be provided to equip local communities with the skills and knowledge needed to effectively participate in PES schemes. Active involvement of local communities in the design, implementation, and monitoring of PES programs is crucial for the promotion of livelihoods.