Kenya-Rwanda Central Banks Sign Deal to ease Cross-Border Payment Services

The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have signed a Memorandum of Understanding (MoU) aimed at easing the expansion of payment service providers between the two countries.

In a joint press release dated March 11, 2026, the two regulators said the agreement establishes a Licence Passporting Framework that will allow payment service providers licensed in one country to operate more easily in the other. The two central banks said the framework is designed to reduce regulatory barriers that have historically slowed the growth of cross-border financial services.

“The MoU outlines the commitment and steps by the Central Banks to develop a Licence Passporting Framework for Payment Service Providers (PSPs) between the two jurisdictions,” the statement said.

According to the regulators, the framework will promote mutual recognition of licensing regimes in Kenya and Rwanda. This is expected to simplify compliance procedures while maintaining strong regulatory oversight.

“The Licence Passporting Framework will represent an important step towards addressing the challenge of duplicative regulatory processes despite substantial similarities in requirements,” the statement added.

Officials said the arrangement will make it easier for licensed payment providers to expand operations across the two markets, which could improve financial services and digital payments for businesses and consumers.

The initiative is also part of a wider regional effort under the East African Community Cross-Border Payment System Masterplan, which seeks to create a more integrated and efficient payment ecosystem across member states.

“This initiative is anchored on the East Africa Community Cross-Border Payment System Masterplan… which sets out a clear vision for a more integrated, efficient and inclusive regional payments landscape,” the statement said.

The two institutions noted that regulatory fragmentation has long limited the expansion of payment services across borders in the region. By aligning licensing rules and encouraging cooperation between regulators, the new framework is expected to address some of those barriers.

CBK further reaffirmed its commitment to strengthening collaboration with regional partners to support modern payment systems and economic growth.

“CBK remains committed to strengthening regional collaboration and ensuring that the national payments infrastructure continues to meet the evolving needs of the economy,” the statement said.

The agreement marks another step in efforts by East African regulators to improve financial integration and support the growing digital payments sector across the region.