Kenya and Rwanda’s central banks have taken steps to enable cross-border payment access, allowing fintech companies to operate more efficiently across both markets.
The Central Bank of Kenya (CBK) and Rwanda’s National Bank (NBR) signed a Memorandum of Understanding (MoU) to create a Licence Passporting Framework for Payment Service Providers (PSPs).
Under this arrangement, PSPs licensed in one country can operate in the other without undergoing separate regulatory approvals, establishing a seamless, mutually recognized cross-border payments ecosystem.
The initiative aligns with the East African Community Cross-Border Payment System Masterplan, which seeks to build an integrated, efficient, and inclusive regional payments network.
“The Licence Passporting Framework is a key step toward reducing duplicative regulatory processes, despite substantial similarities in requirements,” the CBK said.
By harmonizing regulations, Kenya and Rwanda are setting a model for financial openness in Africa, demonstrating how regional cooperation can expand digital financial services while maintaining robust oversight.
Opportunities for fintechs and financial institutions
The framework opens new opportunities for fintechs and banks in both countries. PSPs can now scale beyond national borders, offering services such as mobile money, digital wallets, merchant platforms, fraud protection, and remittances more efficiently.
Banks and financial institutions will also benefit from broader access to payment solutions, smoother transaction flows, and support for e-commerce and digital financial products.
Both countries have experienced rapid growth in digital payments. Kenya boasts over 80 million mobile money accounts and annual transaction volumes exceeding $50 billion, while more than 80% of Rwandan adults use mobile money, with millions of transactions processed annually.
Experts say the initiative highlights the benefits of regulatory collaboration and financial openness in Africa. By adopting interoperable frameworks, African nations can accelerate financial inclusion, boost fintech investment, and strengthen digital financial ecosystems across the continent.