The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have entered into a strategic partnership aimed at strengthening cross-border payment systems between the two countries. In a joint press release issued on March 11, 2026, the two central banks announced the signing of a Memorandum of Understanding (MoU) that establishes a framework for license passporting for Payment Service Providers (PSPs).
The agreement outlines the commitment and procedural steps the two institutions will take to develop a cooperative regulatory structure that will enable licensed PSPs to operate more seamlessly across both countrys.
Kenya and Rwanda Seek to Eliminate Duplicate Payment Licensing
The proposed License Passporting Framework by Kenya and Rwanda is expected to play a crucial role in addressing longstanding regulatory challenges that have affected the expansion of payment service providers across borders. Despite similarities in regulatory standards between Kenya and Rwanda, service providers have historically faced duplicative licensing processes when attempting to operate in both markets.
Through the introduction of mutual recognition of licensing regimes, the framework will reduce such redundancies and facilitate the responsible expansion of licensed PSPs between the two countries. At the same time, the Kenya and Rwanda central banks emphasized that the framework will maintain strong regulatory oversight and supervisory collaboration to safeguard the integrity and stability of the financial system.
This initiative is aligned with the broader objectives of the East African Community (EAC) Cross-Border Payment System Masterplan, which envisions a more integrated, efficient, and inclusive regional payments ecosystem. A key priority of the masterplan is the establishment of a mutual recognition framework for the licensing of payment service providers among partner states.
By addressing regulatory segmentation that has historically constrained the growth of cross-border payment services, the framework aims to enhance financial connectivity and support greater economic integration across the region.
CBK further reaffirmed its commitment to strengthening regional collaboration and ensuring that national payment infrastructure evolves in line with the changing needs of the economy. Through partnerships such as this agreement with Rwanda’s central bank, the institution seeks to promote innovation, efficiency, and accessibility within the regional financial services landscape while supporting the broader goal of deeper economic cooperation within East Africa.
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