Three people have been arrested after they were found with fake Ksh100,000 notes in Embu.
Embu North Sub-county Commander Godfrey Kere said the suspects were nabbed following a tip-off from members of the public.
The suspects were allegedly planning to dupe traders and residents who operate around Manyatta trading centre.
According to the police boss, the suspects were targeting locals who may not be able to distinguish features on the new currency notes.
He warned locals to be on a high alert to avoid being victims of the fraud.
The suspects will be arraigned once police complete investigations.
The incident comes at a time the Central Bank of Kenya (CBK) is struggling to educate the public on the new banknote features.
The notes were unveiled on July 1, during the Madaraka Day fete in Narok County.
CBK also announced that the old Ksh1000 banknotes will become obsolete on October 1.
How to identify genuine banknotes
According to CBK, when the notes are held up to the light, the notes reveal a watermark of a perfect lion’s head, the text CBK and the value of the banknote.
The security thread on the notes also appears as a continuous line.
When tilted at an angle, the notes reveal a security thread that changes colour from red to green on all the currencies.
The 200, 500 and 1000 banknotes have additional rainbow colours on the thread.