On 11 March 2026, the Central Bank of Kenya and the National Bank of Rwanda signed a Memorandum of Understanding (MoU) that lays the groundwork for what regulators describe as a fintech licence passporting framework. The agreement was signed during the Inclusive FinTech Forum 2026 held in Kigali.
The idea behind licence passporting is simple: a fintech company licensed in one country could eventually be allowed to operate in the other without going through a completely new licensing process. Today, digital payment companies expanding into a new country usually have to apply for regulatory approval again, even when the rules are very similar.
By recognising each other’s licensing systems, regulators hope to reduce those barriers and make it easier for financial technology firms to expand between the two markets.
The framework is expected to focus primarily on payment service providers, companies that offer services such as digital wallets, remittances, online payments, and other mobile-based financial services. These services have become increasingly important as more businesses and consumers across East Africa rely on digital transactions.
Officials say the initiative could also help improve cross-border payments between the two countries. Transfers between African countries are often slower and more expensive than domestic payments because financial systems operate under separate regulatory structures.
By coordinating their oversight, Kenya and Rwanda hope to simplify those processes and encourage smoother digital payment flows between their economies.
The partnership reflects a broader regional effort to integrate financial systems in East Africa. Policymakers across the region have been exploring ways to connect payment systems and build a more unified digital financial market.
Both countries are considered key players in Africa’s fintech growth. Kenya is widely known for its advanced mobile money ecosystem, while Rwanda has invested heavily in digital infrastructure and fintech innovation as part of its strategy to become a regional technology hub.
However, the agreement signed in Kigali does not immediately create a single licence system. The MoU begins a process in which regulators will design the full passporting framework, including shared standards, oversight mechanisms, and consumer protection safeguards.
If implemented successfully, the initiative could make it easier for fintech companies to expand across borders while also giving businesses and consumers more seamless digital payment options between the two countries.
For East Africa’s rapidly growing digital economy, the agreement signals a step toward a future where financial services move more freely across national borders.
