In developing countries, informal settlements have been significant in accommodating enormous populations, however, empirical evidences are scarce for assessing residential satisfaction in informal settlements, especially from a sustainability perspective. This paper aims, to investigate the levels and determinants of residential satisfaction in informal settlement areas. The research employed a case study strategy using qualitative and quantitative methods. The data were acquired through interviews and a survey. Descriptive statistics and factor analysis were used to determine the satisfaction level while a generalized linear model was used to analyze predictors of residential satisfaction. The findings showed that 54% of respondents were satisfied with informal settlement residential areas. The inhabitants were highly satisfied with the cost of living, the suitability of the housing acquisition process, tenure options, social homogeneity and availability of low-cost house ownership respectively. In contrast, residents were dissatisfied, with the stormwater discharge system, open spaces and green areas and the neighbourhood’s environmental quality. On the other hand, marital status (married) and occupational type (unemployed) are the main determinant of residential satisfaction among residents. This means currently married and unemployed informal settlers are more satisfied with their residential house than unmarried informal settlers and employed informal settlers. This result shows that despite, informal settlements lacking plans and legal documents, most residents are satisfied with informal settlement residential areas. The results of this study help to understand the needs and aspirations of residents in areas of informal settlements and are useful in developing residential policies in line with residents’ needs and expectations.