The Central Bank of Kenya and the National Bank of Rwanda (which is the Central Bank of Rwanda), have signed a Memorandum of Understanding (MoU) which commits both regulators to develop a License Passporting Framework for Payment Service Providers (PSPs) between the two jurisdictions.
According to the joint press release:
“The License Passporting Framework (the Framework) will represent an important step towards addressing the challenge of duplicative regulatory processes despite substantial similarities in requirements.
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.
This initiative is anchored on the East Africa Community Cross-Border Payment System Masterplan (EAC Masterplan), which sets out a clear vision for a more integrated, efficient, and inclusive regional payments landscape. A key priority under the EAC Masterplan is the development of a mutual recognition framework for the licensing of PSPs in partner states, aimed at addressing the regulatory fragmentation that has historically limited the expansion of payment services across our borders.”
Kenya and Rwanda just signed an MOU to allow for fintech license passporting! pic.twitter.com/sjZSiINw6a
— VII (@SaruniBM) March 11, 2026
The announcement received diverse feedback from different fintech players.
“This is an important step toward reducing regulatory fragmentation across African payment corridors. Greater interoperability between PSPs should significantly improve cross-border liquidity and settlement efficiency,” said Cornell Jones, a fintech governance architect.
Sidney Essendi, a systems lead, said:
“Regional payment integration will depend not only on infrastructure rails, but also on regulatory interoperability. Frameworks like this could meaningfully lower barriers for PSPs operating across East African markets.
A promising step for the ecosystem.”
License passporting has become a topic of interest across the continent over the last few years as the need for cross-border expansion, open banking, and tiered KYC frameworks broaden access to financial services.
The Central Bank of Nigeria, as part of its part of its latest report titled “Shaping the Future of Fintech in Nigeria: Innovation, Inclusion, and Integrity”, highlighted Nigeria’s rising position as a major digital finance hub in Africa and the need for license passporting.
The Central Bank of Nigeria 🇳🇬 February 2026 report titled “Shaping the Future of Fintech in Nigeria: Innovation, Inclusion, and Integrity”, highlights Nigeria’s rising position as a major digital finance hub in Africa.
To sustain the momentum, @cenbank outlined policy measures… pic.twitter.com/RM3BmJdftZ
— BitKE (@BitcoinKE) March 12, 2026
The central bank said that by strengthening collaboration between regulators and innovators, Nigeria’s fintech sector can continue to be a driver of economic growth and a model for financial inclusion across the continent.
The latest announcement for license passporting in East Africa will likely spur similar initiatives across the continent as the benefits of such initiatives become more clear amidst other pan-African initiatives such as the Africa Continental Free-Trade Area (AfCTA).
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