The paper investigated the relationship between service quality and customer satisfaction in microfinance institutions in Wakiso district. A correlational cross-sectional survey design was used. Both quantitative and qualitative approaches were employed. Questionnaires and interviews were used to collect data from 10 selected SACCOs. Data were collected from  samples of SACCO members, board of directors, audit committee members and staff of the selected SACCOs. Documentary analysis was also done to enrich conceptualization of the problem and interpretation of data. Findings revealed that service quality aspects are collectively explanatory variables of customer satisfaction in SACCOs in Wakiso district. Furthermore, the aspect of management communicating effectively with all stakeholders is significantly related to customer satisfaction. The study concludes that service quality should be emphasized in SACCOs in order to ensure customer satisfaction. SACCOs management bodies should further investigate to better understand how their clients think and respond to service quality, because they are seeking to improve their customer satisfaction levels.

Keywords: Customer Satisfaction, Service Quality, Uganda, member- owned microfinance institutions