Kenya, Rwanda sign deal to allow payment firms operate across both markets

CBK Governor Kamau Thugge speaks at the Kenyatta International Convention Centre on October 16, 2024, during the launch of the Inua Biashara Exhibition. (Photo: KBA)

Kenyan licensed payment service providers will soon operate in Rwanda without additional licensing if their regulatory requirements are similar.

This is after the Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) signed an agreement aimed at making it easier for digital payment companies to operate in both countries.

The Memorandum of Understanding signed on March 11, 2026, sets the groundwork for creating a “licence passporting framework” for Payment Service Providers (PSPs).

The system would allow a company licensed in one country to more easily operate in the other.

According to the two regulators, the framework would reduce the need for payment companies to repeat lengthy licensing processes in both Kenya and Rwanda, even when regulatory requirements are similar.

“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,” read a joint statement by the two lenders.

Regulators in both countries would still work together to supervise the companies and ensure they follow financial rules.

Both central banks says that the move will encourage innovation in digital payments and help financial technology companies expand across borders while still maintaining strong oversight by regulators.

The agreement is part of a broader regional effort to improve cross-border payments within the East African Community (EAC).

CBK says the initiative is aligned with the EAC Cross-Border Payment System Masterplan, which aims to create faster, cheaper and more integrated payment systems across the region.

The development could help businesses, traders and individuals send and receive money across borders more easily, especially as digital and mobile payments become more common in East Africa.

The two countries already have strong economic ties. According to international trade data, Kenya exported goods worth about $314.8 million (Sh40.7Billion) to Rwanda in 2024, making Rwanda one of Kenya’s key regional markets.

Major exports include cement, plastics, steel products, cooking oils, fuels and manufactured goods.

However, trade flows between the two countries have seen fluctuations in recent years with Rwanda’s statistics agency shows imports from Kenya dropped sharply in 2025.

The CBK said the agreement reflects Kenya’s commitment to strengthening regional financial cooperation and improving payment infrastructure to meet the changing needs of businesses and consumers.

By reducing regulatory barriers for payment companies, the new framework is expected to encourage more innovation, improve financial inclusion and make it easier for people and businesses to transact across borders within East Africa.