The main purpose of this study has been to measure the influence of socioeconomic, demographic and location characteristics on households’ willingness to pay for improvement of solid waste services. The data for the study was obtained from a random sample of 200 households in Jimma town. Descriptive analysis of the data reveals that while some households are not willing to pay, others are interested to contribute either in labour, in cash or both for improvements in solid waste management services in Jimma town. Estimation results of a multinomial logit model indicate that these choices are influenced by a certain combination of family size, education and age of the household, years of schooling of children or family member, wealth, life-style and location of the dwelling unit. The study concludes with some policy implications for improved solid waste management services in Jimma town.