The National Bank of Rwanda and the Central Bank of Kenya have signed a Memorandum of Understanding to simplify licensing procedures and expand cross-border payment services between the nations.

The ‘passporting’ framework, announced at the Inclusive FinTech Forum in Kigali, will allow payment service providers licensed in one country to operate more easily in the other, and help to address the challenges payment firms currently face in expanding regionally.

“Currently, providers must navigate multiple licensing regimes, despite substantial similarities in regulatory requirements. This fragmentation increases costs and slows the delivery of innovative solutions,” said Central Bank of Kenya Deputy Governor, Gerald Nyaoma Arita.

A joint technical committee will develop the necessary technical and administrative mechanisms for the passporting framework. The MoU marks a key milestone in the implementation of the East African Community (EAC) Cross-Border Payments Master Plan, approved in May 2025, which seeks to accelerate payment system interoperability across the region.