Kenya and Rwanda signed a landmark agreement to streamline fintech licensing. Payment firms can now operate across borders without duplicate approvals.
The Central Bank of Kenya and the National Bank of Rwanda signed the memorandum on March 11, 2026. Moreover, the signing occurred during the Inclusive FinTech Forum in Kigali. The agreement was formalized by Soraya Hakuziyaremye, Rwanda’s central bank governor. Gerald Nyaoma, Kenya’s deputy central bank governor, also signed.
Licence Passporting Framework Introduced
The deal establishes a Licence Passporting Framework for payment service providers. Furthermore, this framework allows mutual recognition of licensing regimes effectively. Companies licensed in one country can operate in the other.
Currently, fintech firms face significant expansion challenges across Africa. Companies must apply for separate licences in each market. Consequently, this duplication delays expansion and increases compliance costs.
The new framework addresses these barriers directly and effectively. Licensed payment companies in one country can expand into the other. However, both regulators will retain oversight of operating firms. Meanwhile, supervisory cooperation will strengthen significantly.
Central Bank Leaders Respond
Hakuziyaremye called the agreement a major milestone for financial integration. “This marks an important achievement in our collective efforts,” she stated.
Nyaoma highlighted that fintech companies still need separate licenses. “The passporting framework signed today is an important step,” he explained. He referenced the European Union’s successful passporting models.
Regional Digital Payment Powerhouses
Kenya remains a powerhouse in digital payments, anchored by M-PESA. Moreover, M-PESA processes vast volumes of mobile money transactions daily. Kenya is widely considered one of Africa’s leading fintech hubs.
Rwanda has been positioning itself as a regional technology hub. Furthermore, regulatory reforms have strengthened its financial sector sophistication. Consequently, Rwanda attracts significant fintech players and investment continuously.
Supporting East African Integration
The agreement aligns with broader East African integration goals. The deal supports the East African Community’s cross-border payments plan. Additionally, this master plan seeks to improve interoperability between regional systems.
The framework is expected to reduce regulatory duplication significantly. Consequently, fintech firms can scale services across markets more easily. Moreover, businesses and consumers benefit from faster digital transactions. Additionally, remittances become smoother and more cost-effective for users.
The agreement could boost innovation and competition in the sector. Furthermore, high mobile money adoption drives demand for seamless transactions. Meanwhile, migrant workers and businesses require efficient cross-border payment solutions.
Maintaining Strong Oversight
Both regulators emphasized that supervision will remain strong despite streamlining. Firms may expand more easily but continue operating under oversight. Regulatory standards will remain consistent across both jurisdictions.
If implemented, the framework will enable payment providers to shorten timelines. Consequently, compliance burdens decrease, and customer networks grow faster. Additionally, merchant adoption accelerates across both markets significantly.
The deal could serve as a regional model eventually. Once implemented, the framework could inspire wider integration. Furthermore, other regional economies may adopt similar frameworks.