The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have signed a groundbreaking Memorandum of Understanding (MoU) aimed at simplifying cross-border payment services and easing licensing procedures for financial firms operating between the two countries. The agreement, unveiled during the Inclusive FinTech Forum in Kigali, lays the foundation for a “passporting” framework that will allow payment service providers licensed in one country to operate more seamlessly in the other.
Speaking at the signing ceremony, CBK Deputy Governor Gerald Nyaoma Arita highlighted the challenges fintech companies face when expanding regionally. “Payment service providers seeking to operate across borders must navigate multiple licensing regimes, even though regulatory requirements are largely similar,” Arita said. “This fragmentation increases costs and slows down the delivery of innovative financial solutions.”
The MoU is a key step toward implementing the East African Community (EAC) Cross-Border Payments Master Plan, approved in May 2025. The plan aims to accelerate payment system interoperability across the region, enabling fintech firms and financial institutions to scale more efficiently and foster financial inclusion. Arita described the agreement as a significant milestone, noting that it took less than a year to finalize a framework that simplifies licensing for companies operating in both markets.
Bilateral cooperation between the CBK and NBR has been ongoing since 2015, and this MoU strengthens that collaboration by supporting financial innovation. Kenya’s mobile payment ecosystem, widely recognized as a global model, has inspired similar digital finance initiatives around the world. Arita cited examples from the European Union, where passporting frameworks allow licensed institutions to provide services across multiple member states, significantly expanding market access.
Looking ahead, Arita said the Kigali agreement will help fintech companies scale across borders while promoting innovation and financial inclusion. “The MoU signed today is the first step,” he said. “The Central Bank of Kenya looks forward to continued collaboration with the National Bank of Rwanda as we work toward the prosperity of our people and position our economies as hubs for innovation and opportunity.”
source: kenyanwall