Three people were on Tuesday arrested with fake Kenyan notes in Yatta Sub-County, Machakos County.
The trio, two foreigners and a Kenyan were nabbed with fake 1,000 new currency notes amounting to Sh9,000.
The incident was confirmed by Machakos County Police Commander Mohammed Maalim who said that the suspects were arrested in Kikuumini village.
41-year-old Ogundeji Abiodum (Nigerian), Tazisong Fabian (Congolese) who is also 41 and 50-year-old Elizabeth Mueni were nabbed by a contingent of officers drawn from Kenya Police Service and the Directorate of Criminal Investigations (DCI).
Maalim said the arrests were made after a tip-off from members of the public.
"The police were notified about the three suspects who were circulating the fake cash to unsuspecting residents at Kikuumini and they swang into action," said Maalim.
The police commander told journalists that the police were also able to recover chemicals used to make fake money from the suspects' home.
He expressed his concerns with the choice of the location chosen by the group to circulate the fake money.
He noted that the suspects will appear in court after police carry out their investigations.
The Central Bank of Kenya on June 1 announced they were recalling the old Sh1,000 notes.
This is in efforts to crackdown on embezzlement and to curb cases of counterfeits and money laundering.