The High Court has declined to court case filed to stop the implementation of 16 percent fuel tax.
Justice Chacha Mwita, on Tuesday directed that the matter be served to the respondents who are expected to appear before court for inter party hearing.
The court has also certified the matter as urgent.
This follows two petitions that were filed by the Central Organisation of Trade Unions (COTU) on Tuesday and activist Okiya Omtatah on Monday.
The two parties challenged the directive by Treasury CS Henry Rotich saying it is unconstitutional.
In court papers seen by Citizen Digital, COTU says if the law is allowed to stand Kenyans will not recover any costs incurred.
The union further notes that the 16 percent imposed on petroleum products will likely increase the prices of commodities.
This comes after the the government stated that the 16 percent VAT was to take effect as of 1st of September 2018.
According to the CS, the move to suspend implementation of the fuel tax by two years is null and void.
Matatu operators had earlier indicated that they would increase fares by 20percent starting September 1.
Parliament had earlier suspended the implementation of the new Value Added Tax (VAT) on petroleum products following public uproar.