The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have agreed to develop a license passporting framework for payment service providers (PSPs) between the two countries.
A License Passporting Framework will create a system where a payment company, for instance, a fintech or mobile money operator licensed in one country, can automatically operate in the other.
Through mutual recognition of licenses, payment companies will be spared the hassle of registering twice. Rather than navigating an entirely new licensing process in each country, firms can expand across East Africa more seamlessly, cost-effectively, and swiftly.
This will be done all while remaining under the watchful eye of regulators.
“The framework will facilitate the responsible expansion of licensed PSPs across Kenya and Rwanda, while preserving robust regulatory oversight and supervisory cooperation,” CBK stated.
In May 2025, central bank governors formally endorsed the East African Community (EAC) Cross-Border Payment System Masterplan. This is a strategic five-year roadmap aimed at transforming and unifying payment infrastructure throughout the bloc.
Fintech license passporting is the first initiative under the EAC Masterplan. It remedies the regulatory fragmentation that has been a barrier to the expansion of payment services across East African countries.
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Kenya has a robust digital payment ecosystem poised to propel Africa’s market to a staggering $1.5 trillion by 2030. In 2024, mobile money agents in Kenya facilitated transactions worth KES 8.7 trillion (approximately $67.3 billion), accounting for an impressive 53% of the nation’s GDP.
On its part, Rwanda’s government has positioned fintech as a cornerstone of its Vision 2050 agenda, with the goal of evolving the nation into a knowledge-driven, cashless economy.
By 2023, more than 6.5 million Rwandans had adopted mobile money platforms, collectively driving upwards of 400 million transactions with a combined annual value of approximately KES 622 billion.
