diff -Nru unity-settings-daemon-15.04.1+16.10.20160819/debian/changelog unity-settings-daemon-15.04.1+16.10.20161003/debian/changelog
--- unity-settings-daemon-15.04.1+16.10.20160819/debian/changelog	2016-10-03 10:18:25.000000000 +0000
+++ unity-settings-daemon-15.04.1+16.10.20161003/debian/changelog	2016-10-03 10:18:25.000000000 +0000
@@ -1,3 +1,15 @@
+unity-settings-daemon (15.04.1+16.10.20161003-0ubuntu1) yakkety; urgency=medium
+
+  [ Dmitry Shachnev ]
+  * Upstart: Split XDG_CURRENT_DESKTOP properly and start only on Unity
+    sessions
+
+  [ Iain Lane ]
+  * Check XDG_CURRENT_DESKTOP properly in the keyboard plugin (LP:
+    #1554878)
+
+ -- iain@orangesquash.org.uk <iain@orangesquash.org.uk>  Mon, 03 Oct 2016 10:15:27 +0000
+
 unity-settings-daemon (15.04.1+16.10.20160819-0ubuntu2) yakkety; urgency=medium
 
   * Add systemd user unit.
diff -Nru unity-settings-daemon-15.04.1+16.10.20160819/debian/unity-settings-daemon.user-session.upstart unity-settings-daemon-15.04.1+16.10.20161003/debian/unity-settings-daemon.user-session.upstart
--- unity-settings-daemon-15.04.1+16.10.20160819/debian/unity-settings-daemon.user-session.upstart	2016-10-03 10:18:25.000000000 +0000
+++ unity-settings-daemon-15.04.1+16.10.20161003/debian/unity-settings-daemon.user-session.upstart	2016-10-03 10:18:25.000000000 +0000
@@ -1,8 +1,18 @@
 description "The Unity Settings Daemon"
 author "Dimitri John Ledkov <xnox@ubuntu.com>"
 
-start on started dbus and starting gnome-session INSTANCE!=GNOME
+start on started dbus and starting gnome-session
 stop on stopping gnome-session
 
+pre-start script
+    for DESKTOP in $(echo "$XDG_CURRENT_DESKTOP" | sed 's/:/ /g')
+    do
+      if [ "x$DESKTOP" = "xUnity" ]; then
+        exit 0
+      fi
+    done
+    stop
+end script
+
 respawn
 exec /usr/lib/unity-settings-daemon/unity-settings-daemon
diff -Nru unity-settings-daemon-15.04.1+16.10.20160819/plugins/keyboard/gsd-keyboard-manager.c unity-settings-daemon-15.04.1+16.10.20161003/plugins/keyboard/gsd-keyboard-manager.c
--- unity-settings-daemon-15.04.1+16.10.20160819/plugins/keyboard/gsd-keyboard-manager.c	2016-08-19 17:46:52.000000000 +0000
+++ unity-settings-daemon-15.04.1+16.10.20161003/plugins/keyboard/gsd-keyboard-manager.c	2016-10-03 10:15:08.000000000 +0000
@@ -977,6 +977,29 @@
         }
 }
 
+static gboolean
+in_desktop (const gchar *name)
+{
+        const gchar *desktop_name_list;
+        gchar **names;
+        gboolean in_list = FALSE;
+        gint i;
+
+        desktop_name_list = g_getenv ("XDG_CURRENT_DESKTOP");
+        if (!desktop_name_list)
+                return FALSE;
+
+        names = g_strsplit (desktop_name_list, ":", -1);
+        for (i = 0; names[i] && !in_list; i++)
+                if (strcmp (names[i], name) == 0) {
+                        in_list = TRUE;
+                        break;
+                }
+        g_strfreev (names);
+
+        return in_list;
+}
+
 static gchar *
 prepare_xkb_options (GsdKeyboardManager *manager,
                      guint               n_sources,
@@ -1001,7 +1024,7 @@
          * and doesn't call us so we can't set the group switching XKB
          * option in the first place otherwise the X server's switch
          * will take effect and we get a broken configuration. */
-        if (n_sources < 2 || g_strcmp0 (g_getenv ("XDG_CURRENT_DESKTOP"), "Unity") == 0)
+        if (n_sources < 2 || in_desktop ("Unity"))
                 strip_xkb_option (options, "grp:");
 
         options_str = build_xkb_options_string (options);