The duo arrested on Thursday last week was at the time found with US$200 in the denominations of US$100, all forged.
Chief Inspector of Police (CIP) Marie Gorrette Umutesi, the Police spokesperson for the City of Kigali, said that the fake dollar notes were identified by the bar manager when the duo was trying to clear a bill.
"Kanamugire and Kagame were having drinks at a bar located in Kacyiru Sector, tried to exchange a dollar note of US$100 in order to clear the bill, but the bar manager later realized that the note was fake," CIP Umutesi said.
"They called the Police and when they searched the two suspects they recovered another counterfeit bill of US$100 on them," she added.
The two-dollar notes had similar serial numbers, CIP Umutesi said.
The suspects said they got the fake notes from someone in Kimisagara, Nyarugenge District, and the spokesperson said that law enforcement agencies are working together to apprehend the alleged accomplices.
CIP Umutesi advised people especially the business community to be cautious against such fraudsters.
She also advised them to acquire gadgets that help to detect forged money, and always share information on people they suspect to be engaged in such financial criminal acts.
According to the article 269 of Rwanda penal code, any person who, fraudulently counterfeits, falsifies coins or banknotes which are legal tender in Rwanda or one who introduces or issues in Rwanda such effects or notes with the knowledge that they are forged or falsified, commits an offense.
Upon conviction, he or she is liable to imprisonment for a term of not less than five years and not more than seven years.