The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have officially entered into a Memorandum of Understanding (MoU) to establish a Licence Passporting Framework for Payment Service Providers (PSPs).
The agreement, announced on March 11, 2026, aims to streamline how financial technology firms and payment providers operate across the two borders.
The core of this initiative is the mutual recognition of licensing regimes. Currently, PSPs looking to operate in both Kenya and Rwanda often face duplicative and costly regulatory processes, despite the fact that both countries share many similar financial requirements.
Under the new Licence Passporting Framework, the two central banks will:
- Acknowledge each other’s licensing standards, allowing for a more seamless entry into the neighboring market.
- Foster responsible expansion of financial services while maintaining strict oversight.
- Enhance supervisory cooperation to ensure the safety and stability of the regional payment ecosystem.
This partnership is a critical component of the East Africa Community Cross-Border Payment System Masterplan (EAC Masterplan). This roadmap envisions a highly integrated, efficient, and inclusive payments landscape across the entire EAC bloc.
By addressing the regulatory fragmentation that has long limited the growth of cross-border payment services, Kenya and Rwanda are setting a precedent for other partner states.