The central banks of Kenya and Rwanda sign a memorandum of understanding on the issuance of licenses for cross-border payments

The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have signed a memorandum of understanding (MoU) to establish a framework for the passporting of licenses for payment service providers (PSPs) in both countries. This framework aims to streamline licensing processes by promoting mutual recognition of regulatory requirements and reducing duplication of efforts, while maintaining rigorous standards of supervision and control.

This initiative is in line with the East African Community’s (EAC) master plan for a cross-border payment system, which aims to create a more integrated and efficient regional payment ecosystem. By introducing a harmonized approach to licensing payment service providers, this framework aims to streamline cross-border payment services, allowing licensed providers to operate more freely between Kenya and Rwanda.

The agreement underscores the commitment of both central banks to fostering regional cooperation and supporting the development of secure and inclusive digital payment systems. This framework is expected to facilitate the expansion of financial services, improve market efficiency, and strengthen the overall payment infrastructure in the region.