The central banks of Rwanda and Kenya just signed the Kigali Declaration on Fintech License Passporting, a major regulatory shortcut that allows fintech firms licensed in one country to operate in the other without starting their paperwork from scratch.
The Details
The deal was inked Wednesday by BNR Governor Soraya Hakuziyaremye and CBK Deputy Governor Gerald Nyaoma at the Inclusive FinTech Forum 2026.
- The Blueprint: The agreement mimics the European Union’s passporting model, where a “home” license grants “host” country access.
- The Precedent: This isn’t Rwanda’s first rodeo; they launched a similar arrangement with the Bank of Ghana in February 2025.
- The Next Steps: A joint technical committee will now hammer out the specific administrative rules to make the transition seamless for providers.
Why It Matters
For years, African fintechs looking to scale have been slowed down by “regulatory silos”—the expensive and redundant process of obtaining separate licenses for every single border they cross.
- Speed to market: Companies can now expand across the East African corridor in months rather than years.
- Lower costs: Bypassing double-licensing reduces the legal and administrative overhead that often kills startups.
- Regional integration: This moves the needle for the African Continental Free Trade Area (AfCFTA) by treating the two markets as a single digital playground.
What They’re Saying
“By expanding the initiative, we can collectively reduce regulatory limitations… and accelerate the development of a more integrated digital payments ecosystem.” — Soraya Hakuziyaremye, BNR Governor
“Payment service providers often… have to obtain multiple licenses, even when regulatory requirements are similar, which increases costs and slows innovation.” — Gerald Nyaoma, CBK Deputy Governor
Between The Lines
While the agreement is a massive win for efficiency, the real test lies in harmonization. For “passporting” to work long-term, Rwanda and Kenya will need to maintain tight alignment on anti-money laundering (AML) and data privacy standards to ensure one country’s “gold standard” isn’t the other’s “security risk.”
Source: New Times
