On 11 March 2026, the Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) signed the Kigali Declaration on Fintech Licence Passporting, a landmark MOU that could fundamentally change how Payment Service Providers (PSPs) expand across East Africa.
What Was Signed? The two central banks committed to developing a Licence Passporting Framework for PSPs operating between Kenya and Rwanda. A joint technical committee will be established to develop the technical and administrative arrangements underpinning the framework.
What Does It Mean in Practice? Today, a fintech licensed in Kenya must undergo a separate, full licensing process in Rwanda to operate there, and vice versa. Under the proposed framework, mutual recognition of licensing regimes would allow PSPs licensed in one jurisdiction to expand into the other without duplicative regulatory processes, while both regulators retain oversight.
Why It Matters This development is significant for several reasons. It creates the potential for lower compliance costs and faster market entry for PSPs, whilst reducing regulatory fragmentation across East Africa. It is also the first initiative under the EAC Cross-Border Payment System Masterplan and is both scalable and open to other African central banks, aligning with AfCFTA’s broader financial integration agenda.
The framework draws on global precedent, including the EU passporting model, and follows Rwanda’s earlier passporting arrangement with the Bank of Ghana in February 2025.
What Should PSPs and Fintechs Do Now? While the technical framework is still being developed, this is the time for PSPs to review their current licensing positions in both jurisdictions, assess cross-border expansion strategies, and monitor the joint technical committee’s output for compliance timelines.
We will continue to track developments as the framework takes shape. Please do not hesitate to reach out to our team for guidance on what this means for your business.