The Central Bank of Kenya (CBK) and the National Bank of Rwanda (NBR) have signed a Memorandum of Understanding(MOU) aimed at creating a shared licence passporting framework for payment service providers operating across borders.
As per the statement released by CBK on March 11, the agreement outlines the commitment and steps by the two monetary authorities to develop a Licence Passporting Framework(LFP) for Payment Service Providers (PSPs) between the two jurisdictions.
Effectively, under the Proposed Framework, a payment company licensed in one country could expand services into the other with fewer regulatory hurdles, reducing time costs and paperwork that have historically slowed regional financial innovation across markets.
