Regional Central Banks Sign Landmark MoU to Implement PSP license Passporting Framework

The financial technology landscape across East Africa has entered a transformative phase. The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have established a landmark agreement to create mutual recognition for payment service provider licenses, creating what amounts to a two-country digital payments corridor. This development signals a critical shift in how regulators across the region are approaching cross-border financial services—and it opens meaningful opportunities for European fintech companies seeking to expand their African footprint. For context, East Africa has become one of the continent's most dynamic fintech ecosystems. Kenya alone hosts over 300 registered fintech companies, while Rwanda has positioned itself as a regional technology hub through aggressive digital economy policies. However, until now, payment service providers operating in these markets faced a substantial friction point: obtaining separate licenses in each jurisdiction, navigating distinct regulatory frameworks, and managing duplicative compliance requirements. This created high barriers to entry for smaller operators and slowed expansion for established players. The passporting framework changes this calculus fundamentally. Similar to how European payment institutions can operate across the EU following PSD2 authorization, Kenya and Rwanda are now establishing mutual recognition protocols. This means a PSP licensed by the CBK can