Loan Sharking Eradicated in Kirundo Cells

In Kirundo Commune, many vulnerable families face a harsh reality. With no access to formal banking services, even small emergencies push them toward loan sharking; informal lending systems, where they become trapped in cycles of debt and exploitation.

Photos: Some of the development cell members in Kirundo gather for saving and loan sessions

Beneficiaries of this region, bordering Rwanda, are largely dependent on subsistence agriculture. Yet livelihoods remain fragile. Prolonged sun exposure often damages crops, while irrigation systems are very limited for them. Beyond farming, opportunities to generate income are extremely limited. At the same time, families must cope with frequent emergencies such as illness, hunger, and other urgent needs that find them unprepared.

In such circumstances, many turn to informal creditors. These lenders take advantage of people’s vulnerability by charging excessive interest rates, going to doubling the loan within a month. When borrowers fail to repay, some creditors wait until harvest time and seize crops as repayment for relatively small sums.

Here, Restobu works with poor church communities and former refugees to strengthen social cohesion and improve livelihoods. Through this initiative, beneficiaries are organized into savings and loan small groups also called development cells. Meeting weekly, members save together, access small loans, and support one another gradually breaking free from predatory lending while building more resilient sources of income. Moreover, Restobu supports their farming initiatives. This has eradicated the system of loan sharking.

Esperance Nzeyimana, member of JIJUKA DUKORE, one of the development cells recounted how the cell has saved her from the predatory lending system.

“Before we resorted to loan sharking. When you borrow 10,000 BIF from someone, you pay back 20,000 BIF; when you ask for 20,000 BIF, you pay back 40,000 BIF. It had traumatized us. When we missed money, debtor  could take a big bowl of beans when harvest; if 1 kg is 500 BIF, they took the whole bowl for 500 BIF. One bag of beans and another were emptied. We felt pain for this and went to hide ourselves in the house not to see how they took your beans, and we shrank. After joining this group, a group of mutual aid and love, when left with nothing, I borrow from the group. When I pay back, another borrows. This helps our households.”

Nadine of the same cell was happy too: “Last year, I borrowed money and bought a boar. It was used to breed my neighbors’ pigs in exchange for a piglet for each litter. Now I have 4 pigs.” She shared

Hunger is the main challenge that affected Nicole’s family. She used to resort to loan sharking when hunger struck her children. However, the cell changed the situation.

“I used to struggle with hunger. I could borrow money from someone, 10,000 BIF; I had to pay back 20,000 BIF. But here I get a good loan.” She shared.

Edith Irakoze was proud of this group. Thanks to it she was able to breed small ruminants, what she couldn’t think it would happen.

Fresh Sorghum plantation of one of the cells in Kirundo

“I borrowed 100,000 BIF from this association and bought a female piglet. After 1 year, it gave birth to 5. I sold them and bought 2 goats; they are about to kid. This group  is so helpful. This is what I can testify, because I had no livestock of my own to breed as a woman, but,  this has been made possible thanks to this group.”  She shared

In Kirundo and Busoni Communes, Restobu is running 14 development cells. All members were chosen according to their vulnerabilities. However, some of living challenges are being lifted thanks to these development cells.