Rwf47 billion loaned out through VUP social protection programme

The government social protection scheme, VUP Umurenge Programme, has disbursed more Rwf47.3 billion in small loans at 2 per cent interest rates through its financial services since 2019, according to the Minister of Local Government, Patrice Mugenzi. The repayment rate currently standing at 81 per cent, Mugenzi told Members of Parliament on Tuesday, March 25, during a plenary session that discussed the social protection and poverty reduction programme. ALSO READ: Govt plans to lift 300,000 families out of poverty in two years He said the VUP financial services benefited more than 336,000 people. “As of now, Rwf14.3 billion has been invested in projects for beneficiaries, while Rwf1.3 billion remains in accounts. We are planning to expand the reach of these loans by leveraging para-social workers, community-based volunteers selected by local citizens,” he said. “These workers play a crucial role in implementing social protection and livelihood programmes, particularly within VUP, by supporting vulnerable households and guiding them towards self-sufficiency,” Mugenzi stated. Between 2019 and 2025, he said, the programme has steadily disbursed loans, with Rwf14.3 billion allocated between 2019 and 2020. In 2021, Rwf5.5 billion was issued, followed by Rwf7.7 billion in 2022. The trend continued with Rwf6.7 billion disbursed in 2023, Rwf6.5 billion in 2024, and Rwf6.9 billion disbursed so far in 2025. MP Venuste Icyitegetse expressed concerns that the loan amounts are insufficient given the scale of the proposed projects in which individuals can access credits limited to Rwf200,000. The Minister noted that while the maximum loan for individual borrower is Rwf200,000, groups are eligible for amounts between Rwf500,000 and Rwf600,000. ALSO READ: Govt to list households in extreme poverty for support MP Venuste Icyitegetse emphasized the need to educate beneficiaries on the nature of these loans, clarifying that they were not handouts but revolving funds that must be repaid to allow others to benefit. MP Jeannette Uwababyeyi called for a more inclusive distribution of funds, stressing that loan officers in sector Saving Credit Cooperatives (SACCOs) should not limit access to a specific group. “This program is not meant for just a few people. Loan officers must ensure that young people in communities also have the opportunity to benefit,” she stated. ALSO READ: What does Rwanda's rising life expectancy mean? MP Françoise Mukandekezi questioned why the loans were limited to individuals aged 18 to 64, arguing that with Rwanda’s rising life expectancy, older individuals should also be considered. “We have observed that some beneficiaries lack the knowledge to properly utilize the loans. In SACCOs, clients receive financial advice from loan officers. A similar approach should be implemented within VUP,” she added. This was echoed by MP Lydia Mushimiyimana, who suggested that beneficiaries receive training before obtaining loans. Government plans to improve loan accessibility Minister Mugenzi acknowledged the need for additional support mechanisms, emphasizing that 14,719 para-social workers across the country will play a key role in enhancing the programme’s effectiveness. ALSO READ: MPs want hitches in country’s social protection programme addressed Among other challenges raised by MPs was a Rwf13,000 fee charged by SACCOs when VUP beneficiaries open accounts. The Minister promised to advocate for a solution with the National Bank of Rwanda (BNR) and the Rwanda Cooperative Agency (RCA) to allow for installment-based payments of this fee. ALSO READ: Experts urge stronger collaboration to expand access to financial services VUP, introduced as a poverty alleviation programme has made a significant impact in the fight against poverty. According to the latest Integrated Household Living Survey (EICV5), extreme poverty stood at 16% in 2018/2019. Minister Mugenzi expressed optimism that the upcoming EICV6 results, expected by the end of this month, will show a further decline, bringing extreme poverty to a lower level.

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Rwf47 billion loaned out through VUP social protection programme