Kenyan protesters were due to stage fresh protests across the country on Thursday against contentious tax hikes that many fear will worsen a cost-of-living crisis.

The cash-strapped government of President William Ruto agreed to make some concessions on Tuesday after hundreds of mostly young protesters clashed with the police in the capital Nairobi.

But the government will still go ahead with some tax increases and has defended the proposed hikes as necessary for filling its coffers and cutting reliance on external borrowing.

Protesters have vowed to take to the streets across the country, including in the Indian Ocean city of Mombasa and the lakeside city of Kisumu, both opposition bastions.

"They need to reject the bill, not edit it," Sarah Njoroge, 21, told AFP. "It appears that they think we are vocal on social media and will get tired."

The authorities have blocked several roads near parliament in Nairobi and deployed a heavy police presence, with lawmakers beginning debate on the bill on Wednesday.

Protesters in Nairobi said they would march to parliament, which must pass the final version of the bill before June 30.

A parliament source told AFP that a vote on the proposals was expected on June 27.

The taxes were projected to raise 346.7 billion shillings ($2.7 billion), equivalent to 1.9 percent of GDP, and reduce the budget deficit from 5.7 percent to 3.3 percent of GDP.

The presidency on Tuesday announced the removal of proposed levies on bread purchases, car ownership as well as financial and mobile services, prompting a warning from the treasury of a 200-billion-shilling shortfall as a result of the budget cuts.

The government has now targeted an increase in fuel prices and export taxes to fill the void left by the changes, a move critics say will make life more expensive in a country already battling high inflation.

Tuesday's protest was largely peaceful with black-clad protesters forced into cat-and-mouse chases with police who fired volleys of teargas.

At least 335 people were arrested, according to a consortium of lobby groups including the human rights commission KNCHR and Amnesty Kenya.

"We have changed tack. Today we will be in colourful and defiant clothing to avoid a repeat of them arresting everyone in black," said an organiser of the march, who requested anonymity fearing reprisals.

Kenya is one of the most dynamic economies in East Africa but a third of its 51.5 million people live in poverty.