Signed on the sidelines of the Inclusive FinTech Forum 2026 in Kigali on Wednesday, the new framework aims to reduce duplicative regulatory processes while maintaining strong oversight, allowing licensed PSPs to operate seamlessly in both Kenya and Rwanda.
By promoting mutual recognition of licensing regimes, the initiative is expected to foster competition, encourage innovation, and accelerate the delivery of digital financial services across borders.
The MoU, the partners said, aligns with the East Africa Community Cross-Border Payment System Masterplan (EAC Masterplan), which envisions a more integrated, efficient, and inclusive regional payments ecosystem.
One of the Masterplan’s key priorities is to create a mutual recognition system for PSP licensing across partner states, addressing the regulatory fragmentation that has historically limited cross-border payment expansion.
Rwanda’s central bank termed the new agreement a “major step toward stronger competition, greater innovation, and faster cross-border digital financial services under robust regulatory oversight.
The Central Bank of Kenya reaffirmed its commitment to strengthening regional collaboration and ensuring that national payment infrastructures meet the evolving needs of the economy.
The agreement is expected to pave the way for a more connected East African payments landscape, benefiting businesses and consumers alike by facilitating faster, safer, and more accessible digital financial services.
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