"The wrong political choices of the leadership of the Ennahda movement led to its isolation and failure," 113 senior officials from the party said in a joint statement.
Kais Saied also extended the suspension of the immunity of members of parliament, as the moves have raised concerns among Tunisians about the future of the democratic system in the country.
By closing political avenues for voters to express their views, the President Kais Saied risks extreme polarisation, and with it, the potential for unrest.
Imperfect and riven with political deadlock, Tunisia's democratic experiment was seen as a model, albeit imperfect. The country's elected president, however, sees the country's future under a different political system.
Supporters of Ennahda Party stage a demonstration on Saturday in the capital Tunis to strengthen national unity and for giving a message of the necessity of dialogue.
Outlets including Sky News Arabia and Al Arabiya published false stories about the leader and founder of the Ennahda party.
Amid a sharp spike in attacks and desecrations of mosques in Tunisia, some see a larger strategy at work trying to incite religious conflict and undermine the current government.
President Saied has 10 days to try to build a coalition that can command a majority in parliament.
During his era, Ben Ali's photograph was displayed in every shop, school and government office from the beach resorts of the Mediterranean coast to the impoverished villages and mining towns of Tunisia's hilly interior.
Sunday's election may push parties to stake out harder positions in the October parliamentary elections against sharing power with ideological opponents.
Nothing is certain in Tunisia's presidential election, only the second since the 'Arab Spring'.
The late president slipped away without leaving a strong political legacy, with his allies seemingly the first to move on and his party fragmented into five.
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