Evaluating households’ willingness to pay for private water supply services in Wakiso District, Uganda

Moses Ssebaggala, and Selma T. Karuaihe*

DOI: https://doi.org/10.53936/afjare.2023.18(1).5

Abstract

Accessing water supply services remains a serious challenge in Wakiso District in Uganda, where most households travel long distances to collect water – a process that threatens their health, productivity and economic wellbeing. Although addressing this challenge requires huge financial investment, the value households attach to accessing private water supply services at their premises is not clear. This study used data from 243 households to determine their willingness to pay (WTP) for private water supply services. The analysis applied the Heckman model to check for sample selection bias, and the contingent valuation method (CVM) to estimate the WTP. The mean WTP was estimated at UGX 203.07 (USD 0.06) per 20 litre jerry can. Socioeconomic and demographic factors that influence WTP were also determined. These findings could guide the design of policies on sustainable water supply and cost recovery in the long run.

Key words: Uganda, WTP, CVM, Heckman model, potable water, sample selection