Why Does it

Have two confusing years?

I'm not confused. Why are you confused?

For any normal person, it would be confusing. 1968  is very different from 1994. 

I can understand your confusion. The text on the front states, “Law No. 32 of 1968…” hence the 1968 date but the banknotes were made in 1994.  Here's some more:

N#203191

N#202225

N#212797

Many dated notes have the first year the series was issued (or a relevant date of legislation re: the said currency). For example the first QEII Canada's Devil Face $1.00 notes were first issued in 1954. They were then modified in 1956 but the date on the note doesn't change (it still had 1954 QEII date) with the Beattie Coyne signature.  Brackets around 1956 would clarify this fact (that the design was modified then).  Later still they had different signatures & in other catalogues you will see a bracket around the actual year the b, c, etc varieties were released into circulation.

Dated notes usually indicates the actual year the series was created/first issued as in this case for the Kuwait ¼ Dinar. Therefore the 1968 date could refer either the law in which the Central bank came into existence (or other laws pertaining to the first issue of the Dinar).  Any dates in brackets (like 1994) is most likely when the note actually hit the streets (was released).

It's not confusing at all. I believe 1964 is the law that authosized the issue of the note, and 1994 is the actual year of the release. Since no one knows exactly when these were released, they just use the same date 1994. To me, it should follow the signatures, when those people were first appointed, but then this also not entirely accurate too, as notes are planned 6-12 months in advance and by the time they are released, they might have someone new sitting in the Governor's chair.