Kenya and Rwanda Sign Deal to Ease Cross-Border Payments

The National Bank of Rwanda (NBR) and the Central Bank of Kenya (CBK) have signed a memorandum of understanding to establish a cross-border payment licensing framework. 

The agreement aims to allow payment service providers licensed in one country to operate in the other with fewer regulatory barriers. The arrangement, announced by CBK on 11 March, outlines plans for a Licence Passporting Framework that will simplify how payment firms expand between the two markets. 

Companies that already hold licences in one jurisdiction will not be required to repeat the full licensing process when entering the other. Instead, regulators will recognise each other’s licensing systems while continuing to supervise the firms operating within their territories.

According to CBK, the framework is intended to support the responsible expansion of licensed payment service providers across both countries. Regulators will retain oversight and cooperate on supervision to ensure compliance with financial regulations and protect consumers.

The initiative forms part of wider efforts to strengthen financial integration in the region. Kenya and Rwanda maintain close economic links. In 2024, Kenya exported goods worth more than KSh40 billion to Rwanda, while imports from Rwanda totalled about KSh3.2 billion. Kenya is among Rwanda’s four largest import partners, alongside China, India and Tanzania.

People-to-people and institutional connections between the two countries are also significant. More than 6,000 Kenyans live and work in Rwanda, while around 100,000 Rwandans reside in Kenya. Kenyan institutions, including Mount Kenya University, have established operations in Rwanda, particularly in the education and banking sectors.