Kenya’s Central Bank Partners With Rwanda’s Bank Establishing New Licence Passporting Framework

The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have signed a Memorandum of Understanding (MoU) to establish a Licence Passporting Framework for Payment Service Providers (PSPs) between the two countries.

In a March 11 statement, CBK said the framework aims to reduce duplicative regulatory processes, allowing licensed PSPs to operate more efficiently across Kenya and Rwanda while maintaining strong regulatory oversight and cooperation.

“The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) announce the signing of a Memorandum of Understanding (MoU). The MoU outlines the commitment and steps by the Central Banks to develop a Licence Passporting Framework for Payment Service Providers (PSPs) between the two jurisdictions,” read part of the statement.

The bank regulator said the initiative is based on the East African Community (EAC) Cross-Border Payment System Masterplan.

It will help companies get licences recognized in both countries, making cross-border payments easier.

CBK stressed its commitment to regional collaboration and to ensuring that Kenya’s payment infrastructure continues to meet the evolving needs of the economy.

CBK on Payment Service Providers

A payment service provider is a person, company, or organization that helps process payments electronically.

This includes companies that handle payment data, operate payment networks, or store payment information for users or other providers.

Any individual or company wishing to operate as a payment service provider must submit a written request to register their business premises.

The completed application form, together with all required documents, should be sent to the central bank for review.

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Applicants must pay a non-refundable fee of KSh 5,000 upon submission.

The central bank evaluates each application and, if the applicant meets all conditions, issues an authorization to start payment services once the authorization fees are paid.

If an application is declined, the central bank will inform the applicant of the reasons and may outline specific requirements to be fulfilled before a new submission can be considered.

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Licensed Payment Service Providers

The table below lists some of the payment service providers licensed by the Central Bank of Kenya (CBK) as of February 2025.