Despite the importance of electronic banking in many financial institutions, fewer studies have focused on customer satisfaction especially in the African setting. With technology implementation, a new phenomenon in Stanbic Bank (Uganda) Limited and many customers has not yet embraced it, this study was conducted to determine the factors that influence customer satisfaction on Electronic banking service as well as examine the relationship between Electronic banking service and customer satisfaction. The major instrument for the data collection was a questionnaire and interview questions so as to be able to collect good quantitative data. The study established that there was a significantly positive relationship between electronic banking and customer satisfaction which is consistent with the findings of Alhawari and Ward (2005). The study recommended that more emphasis and efforts be laid on targeting individual clients. In addition, Electronic banking service providers ought to look out for indicators of innovative ways of creating awareness about the service through participation in trade organizations exhibitions as well as adoption of new technologies of Electronic banking.