Prepaid Billing System and Customer Satisfaction in Water Service Delivery in Uganda: Evidence from Bushenyi Ishaka Municipality

Background The adoption of prepaid billing systems by water utilities in developing economies is a significant management initiative. Understanding its impact on customer satisfaction is crucial. This study investigates this impact at Uganda’s National Water and Sewerage Corporation (NWSC), grounded in the behavioral beliefs construct of the Theory of Planned Behavior (TPB). Methods A quantitative, cross-sectional design was employed. Data were collected from 261 prepaid water customers in Bushenyi-Ishaka Municipality using a structured questionnaire. The collected data were analyzed using SPSS software, with descriptive statistics and linear regression applied to examine the relationship between the prepaid system’s attributes and customer satisfaction. Results The linear regression analysis revealed a statistically significant positive relationship between the prepaid system’s attributes and customer satisfaction (B = 0.592, p < 0.05). This confirms that the behavioral beliefs associated with the prepaid system, as per the TPB, are significant predictors of customer satisfaction. The regression model explains 15.3% of the variance in satisfaction, indicating that other factors not measured in the study also play an influential role. Conclusions The prepaid water billing system significantly enhances customer satisfaction at NWSC by leveraging the principles of transparency and consumer control, as predicted by the TPB. Utility managers should emphasize these benefits and support system implementation with targeted customer education and investment in robust technical infrastructure. This study provides original empirical evidence on the drivers of prepaid water satisfaction in a developing economy and validates the application of the TPB framework in this context.