The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have signed a Memorandum of Understanding (MoU) to simplify licensing procedures and expand cross-border payment services between Kenya and Rwanda.
- •The agreement establishes a framework for cooperation between the two central banks and introduces groundwork for a “passporting” framework that will allow payment service providers licensed in one country to operate more easily in the other.
- •Speaking during the signing ceremony at the Inclusive FinTech Forum in Kigali, Central Bank of Kenya (CBK) Deputy Governor Gerald Nyaoma Arita said payment firms expanding regionally currently face significant regulatory hurdles.
- •The agreement was signed on the sidelines of the Inclusive FinTech Forum, which brings together policymakers, regulators, financial institutions and technology innovators to discuss the future of inclusive finance.
“Payment service providers seeking to operate regionally must navigate multiple licensing regimes despite substantial similarities in regulatory requirements,” Arita said. “This fragmentation increases costs and slows the delivery of innovative solutions.”
He said the passporting framework signed under the MoU will help address these challenges once a joint technical committee develops the necessary technical and administrative mechanisms.
The agreement marks a key milestone in the implementation of the East African Community (EAC) Cross-Border Payments Master Plan, approved in May 2025 to accelerate payment system interoperability across the region.
“What a great milestone that in less than one year, we are able to conclude this agreement to streamline licensing processes for payment service providers seeking to operate in both markets,” Arita said.
The MoU also strengthens bilateral cooperation between the CBK and the National Bank of Rwanda, building on financial sector collaboration between the two institutions dating back to 2015.
Arita said cooperation between central banks has been critical in supporting financial innovation, noting that Kenya’s mobile payments ecosystem has inspired similar digital finance initiatives around the world.
He pointed to global examples such as the European Union, where passporting frameworks allow licensed financial institutions to provide services across multiple member states, significantly expanding market access.
Arita said the agreement signed in Kigali is expected to help fintech companies and financial institutions scale across borders while promoting innovation and financial inclusion.
“The MoU signed today is the first step,” he said. “The Central Bank of Kenya looks forward to continued collaboration with the National Bank of Rwanda as we work toward the prosperity of our people and position our economies as hubs for innovation and opportunity.”
