• Kenya and Rwanda sign deal to recognize payment licenses across borders

• The move aims to cut regulatory duplication and ease market entry

• The initiative could support trade growth and regional financial integration

Kenya and Rwanda have agreed to develop a shared licensing framework that would allow payment companies to operate more easily across both markets.

The Central Bank of Kenya and the National Bank of Rwanda signed a memorandum of understanding to introduce a “license passport” system for payment service providers. Kenya’s central bank announced the agreement on March 11 in a statement posted on X.

Press Release: Central Bank of Kenya and National Bank of Rwanda Sign MOU on Licence Passporting Framework for Payment Service Providers pic.twitter.com/D6UIby9HCk

— Central Bank of Kenya (@CBKKenya) March 11, 2026

The plan centers on mutual recognition of licenses. Payment firms approved in one country would be able to expand into the other without going through a full regulatory process again. Today, companies seeking regional growth must comply with multiple approval procedures, even when requirements are largely similar. This slows expansion and raises the cost of entering new markets.

Both institutions said the future framework should reduce this regulatory fragmentation while preserving strong oversight and coordination between monetary authorities. The goal is to support the responsible expansion of payment service providers in two of East Africa’s most active digital finance markets.

The statement said a key priority of the plan is to develop a mutual recognition framework for licensing payment service providers (PSPs) across partner states, in order to address the regulatory fragmentation that has historically limited the expansion of payment services across borders.

The agreement comes as trade between the two countries continues to grow. Bilateral goods trade reached $315 million in 2024, up from $302 million a year earlier, according to data from United Nations Comtrade. Aligning licensing systems for payment providers could help sustain this momentum by removing administrative barriers.

Monetary authorities also expect the project to support financial innovation and inclusion, while helping build a more integrated, efficient, and accessible regional payments ecosystem.

The initiative is part of the East African Community’s cross-border payments master plan, adopted in May 2025, which aims to strengthen integration and interoperability across payment systems in the region.

Carelle Yourann (Intern)