Kenya and Rwanda are exploring shared licensing for payment service providers to simplify cross-border fintech operations, according to officials.
The memorandum of understanding (MoU) was signed during the Inclusive FinTech Forum in Kigali and is aimed at expanding cross-border payment services while reducing the regulatory burden for fintech companies operating between the two countries.
Central to the agreement is a proposed “passporting” framework, which would allow payment service providers licensed in one country to operate more easily in the other. Currently, fintech companies must navigate multiple licensing regimes even when rules are largely similar, increasing costs and slowing innovation.
If successfully implemented, the framework could make it easier for startups and financial institutions to scale across East Africa, aligning with the East African Community’s cross-border payments master plan, which seeks to improve interoperability between regional payment systems.
The pact also highlights growing regional cooperation in digital finance. Kenya’s mobile payments ecosystem, long led by innovations like M-Pesa, has inspired similar systems across Africa. Regulators see cross-border collaboration as essential for faster payments, stronger fintech growth, and deeper financial inclusion.
