Rwanda and Kenya have signed a new agreement aimed at simplifying cross-border payments and reducing regulatory barriers for financial technology firms operating between the two countries.
The agreement was signed by officials from the National Bank of Rwanda and the Central Bank of Kenya on the sidelines of the Inclusive FinTech Forum in Kigali. It introduces a framework known as fintech license passporting, allowing payment service providers licensed in one country to operate in the other without undergoing a full licensing process again.
The initiative is expected to accelerate digital financial services across both markets by allowing fintech companies to expand regionally while maintaining regulatory oversight from both central banks.
Lowering Barriers for Fintech Expansion
Cross-border financial transactions within East Africa have historically faced challenges due to fragmented payment systems, regulatory differences and reliance on multiple intermediaries. These factors often increase costs and slow down transactions for businesses and individuals moving money across borders.
Under the new framework, licensed payment providers and fintech companies will be able to extend services between Rwanda and Kenya more easily, potentially improving digital payments, remittances and mobile financial services between the two economies.
Industry observers say such regulatory cooperation could help accelerate the development of integrated financial services across the East African region.
Why It Matters
Cross-border payments remain one of the biggest friction points for businesses operating across Africa. According to the World Bank, remittance and cross-border transfer costs in parts of Africa remain among the highest globally due to limited payment interoperability and regulatory fragmentation.
Simplifying digital payment channels could significantly reduce transaction costs for traders, entrepreneurs and small businesses that regularly move money between Rwanda and Kenya.
Improved payment connectivity may also support the expansion of digital commerce and cross-border trade across the East African Community.
Push for Regional Financial Integration
The agreement aligns with broader regional efforts to strengthen financial integration within East Africa. Policymakers across the region have been working toward interoperable payment systems that allow faster and more affordable transactions between member states.
The East African Community has identified digital financial infrastructure as a key component of regional trade and economic integration, particularly as mobile money and fintech adoption continue to grow across the continent.
Regulatory cooperation between central banks is increasingly viewed as essential for enabling fintech companies to scale across multiple African markets.
The Bigger Picture for African Payments
Across Africa, governments and financial institutions are exploring ways to make cross-border payments faster, cheaper and more transparent. The growth of digital banking, fintech startups and mobile payment platforms is accelerating demand for interoperable payment systems.
Industry estimates suggest Africa’s digital payments market could exceed $1 trillion in annual transaction value by 2030, driven by fintech growth, expanding internet access and increased mobile money adoption.
For Rwanda and Kenya—two of East Africa’s most dynamic fintech ecosystems—the new framework could create opportunities for startups, payment providers and financial institutions to expand services across borders while supporting regional trade.
The agreement also comes as Rwanda continues to strengthen its fintech infrastructure and digital banking ecosystem.
Related: Bank of Kigali launches Open API platform to expand fintech collaboration.
CABN Contributor