Credit Management and Customers Willingness to Settle National Water and Sewage Corporation Bills

ABSTRACT The study aimed at credit management and customers’ willingness to settle bills of National Water and Sewerage Corporation — Kampala Water. The study was guided by the following objectives: To find out the relationship between credit management and customers’ willingness to settle water bills. The research study was carried out to investigate how credit management can be best orientated to enhance and improve the collection margin. The study was carried out from National Water and Sewerage Corporation ~NWSC) Kampala Water. The study used a descriptive survey research design in which both qualitative and quantitative methods were used. The collected data was presented in tables with varying percentages calculated. Interpretations and drawing of recommendations were made according to the number of occurrences on each item. The study findings revealed that credit management has a great influence on customers’ willingness to settle water bills. The study summarized that; the credit management and customers’ willingness to settle water bills are affected by the art of decision making, planning and implementation plus consultation of customers in form of education, awareness and sensitization about the activities of NWSC on her mission and vision statements, and most vital their duties and xi obligations towards the corporation in return for the services enjoyed that resultantly would enhance and improve credit collection. Basing on the study findings, the following recommendations were captured from the respondents; Organizational / institutional politics always demotivates staff which finally affects credit management in NWSC; so such should be vehemently discouraged to safeguard and promote the mission and vision statement of the corporation, There is still a great need for the management to appreciate and recognize what the staffs are doing most especially at branch levels cultivate the art of belonging and confidence in the corporation, to achieve the millennium development goals water should be subsidized to a flat rate for everybody to afford with ease and convenience. Furthermore, transparency in rewards and promotion has a positive bearing on performance and management should value it seriously when there is need for promotions, like banks job rotation based on qualification either annually or after two years should be encouraged to embrace various skills and knowledge in accounts, stores, commercial, technical, finance and other departments in the corporation, important to note incentives should be encouraged like lobbying from the Government to increase on their releases / subsidies and lastly be strict on commercial and domestic collections in handling and resolving issues affecting the credit management policies and procedures.

 TABLE OF CONTENTS

DECLARATION 

APPROVAL

DEDICATION iv

ACKNOWLEDGEMENT v

TABLE OF CONTENTS vii

LIST OF TABLES xiv

ABSTRACT xvii

CHAPTER ONE: INTRODUCTION 1

1.1 Background to the study 1

1.2 Statement of the problem 5

1.3. Purpose of the study 6

1.4. Objectives of the study 6

1.5. Research Questions 6

1.6 Scope of Study 7

1.7 Significance of the study 7

CHAPTER TWO: LITERATURE REVIEW 8

2.1 Introduction 8

2.2 Theoretical framework 8

2.4 Review ofrelated literature 8

2.3.1 Credit management 8

2.3.2 Aspect of custorner& willingness to settle water bills 9 .~

2.3.3 Water tariff 12

2.3.4. Reliability of water supply 14

2.4 Ability to pay 16

2.5 Revenue Collection 20

CHAPTER THREE: RESEARCH METHODOLOGY 23

3.1 Introduction 23

3.2 Research design 23

3.3 Research Environment 23

3.4. Study Population 24

3.5. Selection of water Branches 24

3.6. Sample size 24

3.7. Research Instruments for data collection 24

3.7.1 Primary and Secondary data 24

3.7.2 Research Revised Questionnaire 25

3.8.1 Validity of Instruments 25

3.8.2 Reliability of Research Instruments 26 ~

3,9. Data collection procedure 26

3.10 Data processing and analysis 26

CHAPTER FOUR: PRESENTATION, ANALYSIS, FINDINGS AND

INTERPRETATION OF DATA 28

4.1 Introduction 28

4.2 Credit management 28

4.3 Participation in handling matters concerning credit management 29

4.4 Good credit management can be enhanced by motivated staff 30

4.5 Customers’ willingness to settle water bills 30

4.6 ignoring customers complaints 32

4.7 customers’ willingness influenced by solving their problems 33 i

4.8 Section D: Orientation statements 33

4.9 Section E: Orientation statements 35

4.10 Section F: Orientation statements 36

4.11 Section G: Orientation statements 37

4.12 Section H: Orientation statements 38

4.1.3 Ways of improving customers’ willingness 40 ~

4.1.4 Other Reasons 40

4.1,5 Disconnected customers 41

4.1.6 Revenue collection 41

4.1.7 Preferred customers 42

4.1.8 Domestic and commercial customers 1.42

4.1.9 Relevant information 43

4.2.0 Correlation 44

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND

RECOMMENDATIONS 45

5.1 Introduction .45

5.2 Summary 45

5.3 Conclusion 46

5.4 Recommendations 48

References 50

Appendixes 54

APPENDIXES

Appendix 1: Letter of introduction 54

Appendix 11: Research questions 55

Appendix 111: Calculation for the content validity index (CVI) of

instruments 71

Appendix 1V: Calculation for the reliability of the instruments using the

Cronbach’s alflha correlation coefficient 73