The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have signed a MoU to develop a License Passporting Framework for Payment Service Providers (PSPs) operating between the two countries.

The Framework will reduce duplicated regulatory processes and recognise the substantial similarities in licensing requirements across the two jurisdictions.

By promoting mutual recognition of licensing regimes, it will enable licensed PSPs to expand their services across Kenya and Rwanda without compromising regulatory oversight or supervisory cooperation.

The initiative is part of the East Africa Community Cross-Border Payment System Masterplan, which outlines a strategy for a more integrated, efficient, and inclusive regional payments landscape.

A key focus of the Masterplan is the creation of a mutual recognition framework for PSP licensing in partner states, aimed at overcoming regulatory fragmentation that has historically limited cross-border payment services.

CBK has reaffirmed its commitment to strengthening regional collaboration and ensuring that the national payments infrastructure continues to meet the evolving needs of the economy.

Featured image credit: Edited by Fintech News Middle East, based on image by Central Bank of Rwanda via X