President William Ruto signed the new tax package into law two weeks ago. / Photo: Reuters

A Kenyan court has dismissed a request by the state to lift the suspension on a new finance law that introduced tax increases, including doubling tax on fuel.

The new tax package sparked widespread protests last week at a time when many people were already struggling with high living costs.

President William Ruto’s government is seeking to raise revenue to pay huge debts and fill the government's depleted coffers.

Justice Mugure Thande on Monday declined to grant the government's request to lift the orders, saying the petitioners who sued the government had raised weighty issues that should be determined by a full hearing.

Appeal suspension

Lawyers for the government immediately sought leave to seek the removal of the order at the Court of Appeals.

Thande said the case would now be referred to the chief justice to form a panel of judges to hear the matter.

The High Court blocked the hikes on June 30 but the government still raised retail prices of petrol, causing one of the petitioners to open a contempt application against the head of the state energy regulator. The contempt application is still pending.

The tax hikes are expected to raise an extra $1.42 billion a year but will lead to an increase in prices of basic goods and services including food.

Opposition leader Raila Odinga has called for more protests on Wednesday against the tax hikes and other grievances.

TRT Afrika and agencies