Nteziyaremye Kaberuka, 52, was arrested on Tuesday in Ruhango sector following a tip-off from residents on his criminal business, Police said.
Kanyanga is classified among psychotropic substances and banned in Rwanda.
Chief Inspector of Police (CIP) Bonaventure Karekezi, the Police spokesperson for the Southern region said that Kaberuka was also distilling Kanyanga.
"Residents of Ruhango Sector called the Police reporting Kaberuka that he distills Kanyanga, which he sells to other retailers. Police responded and arrested him red-handed. He had already distilled 28 liters of Kanyanga which were also seized alongside equipment and materials he was using," he said.
The regional police spokesperson thanked residents for sharing credible information that led to the arrest of Kaberuka.
"This partnership and ownership of the public to report drug dealers is the reason many people engaged in these unlawful acts have been arrested," he said, calling for continued information sharing on anyone they suspect to be trafficking, making or selling narcotic drugs and psychotropic substances.