The Central Bank of Kenya and the National Bank of Rwanda have signed a new agreement to enable cross-border payment access for fintech companies and payment service providers, marking a major step toward deeper financial integration between Kenya and Rwanda, according to Business Insider Africa.
The two regulators signed a Memorandum of Understanding (MoU) to establish a licence passporting framework, which will allow licensed payment service providers in one country to operate more easily in the other without undergoing duplicate regulatory approval processes, as stated in a joint central bank press release.
The initiative is designed to reduce regulatory barriers that have historically slowed the expansion of fintech services across borders. By recognising each other’s licensing regimes, the framework will support the responsible expansion of digital payment platforms while maintaining regulatory oversight and supervisory cooperation between the two central banks.
The agreement forms part of the East African Community cross-border payment system masterplan, which aims to create a more integrated regional payments ecosystem and make digital financial services faster, cheaper and more accessible for businesses and consumers across the region.
Image Credit: fintechnews.sg
