The National Bank of Rwanda (BNR) and the Central Bank of Kenya have signed a Memorandum of Understanding (MoU) establishing a License Passporting Framework that will allow Payment Service Providers (PSPs) licensed in one country to operate in the other.
The two central banks jointly announced the agreement on Wednesday, March 11, 2026.
The new framework is expected to ease the expansion of payment service providers across the two markets by eliminating the need for companies to undergo similar regulatory approval processes separately in both countries.
Under the arrangement, payment service providers licensed by either regulator will be able to extend their services into the other country, with their licenses recognized across both jurisdictions.
The initiative is part of broader efforts under the East African Community to strengthen regional financial integration through the EAC Cross-Border Payment System Masterplan.
The regional plan seeks to build a faster, more efficient and inclusive cross-border payment ecosystem that enables individuals and businesses to transact seamlessly across East Africa.
A key objective of the framework is to harmonize licensing requirements for payment service providers across EAC member states, addressing regulatory differences that have previously slowed the growth of cross-border digital payment services.
The Central Bank of Kenya said the agreement reflects its commitment to strengthening regional financial cooperation and improving the efficiency of payment systems in line with evolving economic and technological developments.
