The Central Bank of Kenya and the National Bank of Rwanda have signed a Memorandum of Understanding setting out a commitment and steps to develop a licence passporting framework for payment service providers across the two jurisdictions. The framework is intended to enable mutual recognition of licensing regimes so licensed PSPs can expand operations between Kenya and Rwanda with continued regulatory oversight and supervisory cooperation. The initiative is positioned as a response to duplicative regulatory processes where licensing requirements are substantially similar, and as a mechanism to reduce regulatory fragmentation that has constrained cross-border payment service expansion. The work is anchored on the East Africa Community Cross-Border Payment System Masterplan, which includes development of a mutual recognition framework for PSP licensing in partner states as a stated priority.