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Changes in land use and land cover (LULC) are the leading contributors to the decline and loss of ecosystem services in the world. The present study covered the Central Rift Valley lakes basin in Ethiopia, focusing on the valley floor and the East and West escarpments, to analyze changes in LULC and to estimate associated losses in ecosystem service values (ESVs). Covering both upstream and downstream areas in the basin, the study addressed major gaps in existing studies by connecting the sources and sinks of material (e.g., sediment and water) in source-to-lake systems. Additionally, the study facilitated the identification of critical areas for conserving natural resources and reversing the decline of associated ESVs in the Central Rift Valley. A post-classification comparison approach was used to detect LULC changes between 1973 and 2020 using four Landsat images from 1973, 1990, 2005 and 2020. The value transfer valuation method was used to estimate the changes in ESVs due to LULC changes. Among the seven major identified LULC classes, farmlands, settlements, and bare lands showed positive changes, while forestlands, grasslands, shrublands and waterbodies showed negative changes over the last 47 years. The expansion of farmlands, for example, has occurred at the expense of grasslands, forestlands and shrublands. The changes in LULC over a period of 47 years resulted in a total loss of US $62,110.4 × 106 in ESVs. The contributors to the overall loss of ESVs in decreasing order are provisioning services (US $33,795.1 × 106), cultural services (US $28,981.5 × 106) and regulating services (US $652.9 × 106). The results imply that addressing the degradation of land and water resources is crucial to reversing the loss of ecosystem services and achieving the national Sustainable Development Goals (SDGs) related to food and water security (SDGs 2 and 6) and life on land (SDG 15).
