CBK, Rwanda Central Bank Sign Deal to Ease Cross-Border Payment Licensing

Nairobi, Kenya – The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have signed a Memorandum of Understanding (MOU) to create a shared licence passporting framework for payment service providers (PSPs) operating across both countries.

The agreement, announced on March 11, aims to simplify regulatory procedures for payment firms, allowing companies licensed in one country to expand into the other with fewer hurdles, reduced paperwork, and lower time costs.

Key Details of the Framework

Mutual recognition of licensing regimes: Regulators in both countries will acknowledge similar standards while maintaining oversight of PSPs in their respective jurisdictions.

Reduced duplication: Payment firms will no longer repeat nearly identical licensing procedures when entering the neighbouring market.

Regulatory oversight maintained: Both CBK and NBR retain supervisory control to ensure safe and responsible expansion of services.

“By promoting mutual recognition of licensing regimes, the Framework will facilitate the responsible expansion of licensed PSPs across Kenya and Rwanda, while preserving robust regulatory oversight and supervisory cooperation,” CBK stated.

Economic and Regional Context

Trade between Kenya and Rwanda remains strong:

Kenya exports to Rwanda: Ksh 40 billion (USD 315 million) in 2024.

Rwanda exports to Kenya: Ksh 3.2 billion (USD 24.9 million).

The trade balance heavily favours Kenya, making it a key regional supplier. Over 6,000 Kenyans live and work in Rwanda, while the Rwandan community in Kenya is estimated at around 100,000, including professionals and business owners.

For entrepreneurs and fintech firms, the new framework promises faster expansion, enabling smoother mobile payments, remittances, and digital financial services for businesses and consumers across borders.

Alignment with EAC Masterplan

CBK confirmed that the strategy is anchored on the East Africa Community Cross-Border Payment System Masterplan, which envisions a more integrated, efficient, and inclusive regional payments landscape.