The proposition which drove this study was that small-scale forest carbon sequestration projects can play their own role of sequestering carbon while thriving the livelihood of local people. The objective of the study was to investigate the impacts of the International Small Group and Tree Planting Program (TIST) upon the livelihood of the local people. A case study was used to investigate the area where the project is undertaken, Central Meru District, Kenya. A total of 90 households were used as sources for the primary data. The findings of the study revealed that the small-scale forest carbon sequestration program has brought considerable livelihood supports (in terms of owning better number of trees, improved food security, housing, financial incentives, i.e. ‘carbon payments’, improved awareness on environmental protection and agroforestry knowledge, and potentially expected further carbon payments). There were, however, program challenges that need to be addressed by the relevant project stakeholders. The major challenges are blurred greenhouse gas (GhG) contract, asymmetry of interest between the program owners and the local people with regard to selecting tree species to be planted, high opportunity cost of land, and community’s lack of confidence over program’s sustainability. So, it is safe to conclude that the long-term sustainability of the small-scale carbon sequestration program is under question. When small-scale forest carbon sequestration projects are considered as options of storing carbon, their impact over the livelihood of local communities need to be considered especially the opportunity cost of using land to plant trees ( than using it to produce crops) should be determined. Furthermore, the contracts made between the local people and the forest carbon sequestering programs should consider capacity limitations of local people in understanding those contracts which have a long-term impact over their livelihood. Therefore, the Government of Kenya can play a role between local communities and the carbon projects so that both forests and local people thrive. To this end, there is a need for appropriate institutional and administrative framework to enhance program sustainability and increase the contractual capacity of powerless local community groups.