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The only response to this sort of conditions that I have seen is to build the pit above ground in the form of a big concrete box with a latrine sitting on top of it. This is easier where composting toilets or pumping out to tankers is practiced than the situation where people simply use a hole in the ground and then move on when it is filled. The costs of a latrine of this sort are likely to be higher than the costs of a house/hut In a similar way, the old cemeteries in New Orleans are like stone filing cabinets built above ground as it was impossible to dig holes and bury people safely in the marshy ground.
Martin