Muhanga District authorities have ruled out compensating owners of illegal alcohol factories that have been shut down as part of the government’s nationwide crackdown on unsafe alcoholic beverages, saying the businesses violated the conditions under which they were licensed.
The announcement was made by Muhanga District Mayor Jacqueline Kayitare during a six-day operation to seize and destroy illegal alcoholic drinks from factories, shops and households across the district.
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Authorities destroy illegal alcohol and close factories
As part of the operation, Muhanga District officials, working alongside security agencies, destroyed large quantities of alcoholic beverages produced by Super Sharp Multibusiness Ltd, a factory located in Shyogwe Sector.
The factory reportedly had the capacity to supply at least 300 cartons, each containing 24 bottles, to markets across the Southern Province every day.
The operation is part of the government’s wider campaign to remove substandard and illegally manufactured alcoholic beverages from the market.
Factory owners fear financial losses
The owner of the factory said the closure has placed him in a difficult financial position after investing heavily in the business.
He explained that he had obtained a bank loan of more than Rwf100 million after being instructed to relocate the factory because it was operating in a residential area.
According to him, the factory served as collateral for the loan, making repayment difficult following the closure.
“I have been paying the bank more than Rwf3 million every month using income from this business. Now I have no source of income, and unless the government intervenes, the bank may auction my property.”
The factory owner also maintained that he had obtained the necessary operating documents and argued that the products had already been distributed to various markets before the crackdown.
Meanwhile, the factory’s Human Resources manager said the closure has left more than 100 employees, including university graduates, without jobs.
“We request the government to conduct a thorough assessment so that factories that meet the required standards can resume operations and people can return to work.”
District says no compensation will be provided
Mayor Jacqueline Kayitare said the government would not compensate factory owners because investigations found they had failed to comply with the conditions under which they were licensed.
“These people were granted licenses but operated contrary to what they had applied for. They must take responsibility for the harm caused to the people they supplied, and the government has no basis to compensate them.”
She urged residents to report anyone who continues to manufacture, store or distribute the banned alcoholic drinks, warning that anyone found hiding such products would be treated as an accomplice.
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Crackdown continues across Muhanga
Authorities said alcohol seized from three factories in Muhanga, along with large quantities of the banned METAL alcoholic beverages collected from different parts of the district, is being destroyed as the operation continues.
The crackdown forms part of the government’s broader efforts to protect public health by removing unsafe alcoholic products from the market and holding manufacturers accountable.
