KIGALI, Rwanda. In a move set to redefine the financial landscape of East Africa, the Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have officially signed the Kigali Declaration on Fintech License Passporting.
The agreement, formalized on March 11, 2026, on the sidelines of the Inclusive FinTech Forum, establishes a "passporting" framework. This allows fintech companies and Payment Service Providers (PSPs) licensed in one country to operate in the other without the exhaustive and redundant process of securing a second, independent license.
Breaking the Regulatory Silos
For over a decade, African fintechs have struggled with fragmented regulations. Expanding from Nairobi to Kigali often required years of legal hurdles and double the compliance costs. This deal effectively treats the two nations as a single regulatory territory for digital payments.
''The passporting framework signed today is an important step toward addressing this challenge once the joint technical committee under the memorandum of understanding develops the necessary technical and administrative arrangements''.
Key Pillars of the Agreement
Mutual Recognition: Regulators will recognize each other’s licensing and due diligence, drastically reducing time-to-market for startups.
Joint Oversight: While licensing is streamlined, both central banks will maintain a joint technical committee to coordinate supervision, ensuring financial stability and consumer protection remain uncompromised.
EAC Integration: The deal is the first major execution of the East African Community (EAC) Cross-Border Payments Master Plan, approved in 2025.
Pan-African Ambition: This follows Rwanda's 2025 passporting deal with Ghana, signaling a growing "regulatory corridor" that could eventually link West and East Africa.
Economic Impact at a Glance
The merger of these two markets creates a digital ecosystem serving over 100 million consumers.
| Impact Area | Benefit |
| For Startups | Expansion timelines drop from years to months. |
| For Investors | Greater confidence in "scale-ready" African companies. |
| For Consumers | Lower transaction fees due to reduced operational overhead for providers. |
The Road Ahead
This landmark deal is being hailed as a blueprint for the rest of the continent. By moving away from isolated national systems toward regional coordination, Kenya and Rwanda are positioning East Africa as the primary hub for global fintech investment.