KIGALI — In a landmark move for East African economic integration, the National Bank of Rwanda and the Central Bank of Kenya have signed a “Fintech Passporting” agreement, effectively dismantling the high regulatory barriers that have long stifled cross-border business growth.
The agreement was signed on Wednesday, March 11, 2026, at the Inclusive FinTech Forum by Governor Soraya Hakuziyaremye and Kenya’s Deputy Governor Gerald Nyaoma. This new framework allows a fintech company licensed in one country to operate in the other without the grueling, repetitive, and often prohibitively expensive process of starting a licensing application from scratch.
Breaking the $700,000 Barrier
For years, the dream of a “pan-African” fintech has been deferred by the sheer cost of compliance. Norbert Haguma, Country Manager at NALA Payments and Chairman of the Rwanda Blockchain Association, highlights that licensing fees for payment service providers can range from $70,000 to a staggering $700,000 per country.
“The main issue for African fintechs is that if you have to get a license in every market, it often means depositing a lot of money,” Haguma explained. “This is why the fintech passporting agreement is such a big deal. You still provide the necessary documents, but because you’ve gone through testing in one country, it is accepted more easily in another.”
Key Benefits of the Licensing Passport:
- Reduced Capital Entry: Startups no longer need to multiply heavy deposit requirements across every border.
- Faster Time-to-Market: Approval processes that previously took months are expected to be significantly streamlined.
- Market Expansion: Rwandan firms can now easily access the larger Kenyan market, while Kenyan firms gain a seamless entry point into Rwanda’s growing tech ecosystem.
A Path to Continental Integration
This deal follows a similar successful agreement between Rwanda and Ghana. Adebimpe Talabi of the Africa Fintech Network (AFN) notes that these bilateral moves are the building blocks for a broader vision: the African Continental Free Trade Area (AfCFTA).
“If a fintech is properly licensed and supervised in one jurisdiction, it should be able to operate in another through a simplified approval process,” Talabi said, noting that such alignment is crucial for accelerating digital financial integration across the continent.
Solving the “Small Market” Problem
For Rwandan entrepreneurs, the deal is a lifeline. Fintech expert Leon Kanamugire pointed out that Rwanda’s domestic market is often too small for a startup to scale to global standards.
“Now, a fintech licensed in Rwanda can operate in Kenya and integrate with Ghanaian fintechs,” Kanamugire said. “This brings more investment and removes the limitation of consumers.”
What’s Next for Implementation?
The framework is moving quickly into the testing phase. Ghanaian companies are already utilizing Rwanda’s regulatory “sandbox” to test their services under the new passporting rules. Kenyan firms are expected to join the sandbox immediately, paving the way for Rwandan consumers to soon pay Kenyan employees or convert currencies with the same ease as a local transaction.
