KIGALI, Mar 12 – The Central Bank of Kenya and the National Bank of Rwanda have signed a memorandum of understanding aimed at simplifying licensing procedures and expanding cross border payment services between the two countries.
The agreement lays the groundwork for a licence passporting framework that would allow payment service providers licensed in one country to operate in the other without applying for a new licence.
The pact was signed on the sidelines of the Inclusive FinTech Forum in Kigali and establishes a framework for cooperation between the two regulators.
Officials said payment companies expanding across borders currently face multiple licensing regimes despite similarities in regulatory requirements. These processes often raise compliance costs and slow the rollout of digital payment services across neighbouring markets.
Under the proposed arrangement, regulators in both countries will recognise each other’s licensing systems while coordinating supervision of companies operating in their respective markets. A joint technical committee will develop the administrative and technical mechanisms required to implement the framework.
Officials said the memorandum also strengthens financial sector cooperation between the two central banks, building on collaboration that dates back to 2015.
Authorities from both institutions said the agreement represents an early step toward streamlining licensing processes for payment service providers seeking to operate in both markets while supporting financial innovation and expanding access to digital financial services.
