AbstractThe indigenous agroforestry systems practised by smallholders in south-eastern Ethiopia have high biodiversity and productivity. However, little is known about their carbon (C) inputs and outputs. We carried out a 1-year litterbag study to determine leaf litter decomposition k constants for six woody species common to these agroforestry systems. The k values were then used to calculate the decomposition C losses from measured litterfall C fluxes and the results compared to modelled soil respiration (Rs) C losses. Litterbag weight loss at the end of the year was 100% or nearly so, k values 2.582–6.108 (yr−1) and half-life 41–112 days. k values were significantly (p = 0.023) correlated with litter N contents, nearly so with C/N ratios (p = 0.053), but not with other nutrients (Ca, Mg and K), and negatively correlated with temperature (p = 0.080). Using species, farm elevation, temperature and litter quality as predictors, partial least squares regression explained 48% of the variation in k. Depending on species, estimated decomposition C losses from litterfall were 18 to 58% lower than annual litterfall C inputs. Using a heterotrophic respiration (Rh) to Rs ratio of 0.5, modelled Rh C losses were 89 to 238% of litterfall decomposition C losses estimated using k values. However, using an Rh/Rs ratio of 0.27, which is appropriate for tropical humid forests, Rh C losses were 11 to 138% of estimated litterfall decomposition C losses. Our decomposition and soil respiration estimates indicate that litterfall is sufficient to maintain soil organic C contents and thereby the soil fertility of these unique agroforestry systems.