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On March 11, 2026, the Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) signed a Memorandum of Understanding (MoU) to develop a Licence Passporting Framework for Payment Service Providers (PSPs) between the two jurisdictions. The framework aims to streamline regulatory processes by promoting mutual recognition of licensing regimes across Kenya and Rwanda. Currently, PSPs face duplicative regulatory requirements despite substantial similarities in the licensing standards applied by both central banks. By establishing the passporting framework, the CBK and NBR intend to facilitate the responsible expansion of licensed PSPs across both jurisdictions while maintaining robust regulatory oversight and supervisory cooperation. The initiative addresses regulatory fragmentation that has historically limited cross-border payment service expansion in the region. The framework is anchored on the East Africa Community Cross-Border Payment System Masterplan (EAC Masterplan), which establishes a vision for a more integrated, efficient, and inclusive regional payments landscape. A key priority under the EAC Masterplan is the development of a mutual recognition framework for PSP licensing in partner states. The CBK has committed to strengthening regional collaboration to ensure that Kenya's national payments infrastructure continues to meet evolving economic needs. The framework represents a significant step towards facilitating cross-border payment services while preserving regulatory standards and supervisory coordination between the two central banks. REFERENCES: Central Bank of Kenya and National Bank of Rwanda Press Release (March 11, 2026)