Soul package and input encoding

I have the following code:

\documentclass{article}

\usepackage[english,greek]{babel}
\usepackage[utf8]{inputenc}
\usepackage{kerkis}

\usepackage{color,soul}

\setul{0.1cm}{0.2ex}
\setulcolor{red}

\begin{document}

%\ul{Τεστ}
\ul{Test}
\textlatin{\ul{Test}}

\end{document}

which produces:

However, if I uncomment the line %\ul{Τεστ}, there are many errors produced, without getting any output. I guess this issue has to do with the encoding. How am I to override it?

The Greek letters need some more work for soul due to the utf8 encoding -- there is soulutf8 as an extension of soul for this (and other non latin characters)

There is no need to load soul separately.

\documentclass{article}

\usepackage[T1]{fontenc}
\usepackage[utf8]{inputenc}
\usepackage[english,greek]{babel}
\usepackage{soulutf8}
\usepackage{kerkis}

\usepackage{xcolor}

\setul{0.1cm}{0.2ex}
\setulcolor{red}

\begin{document}

\protect\ul{Τεστ}
\ul{Test}
\textlatin{\ul{Test}}

\end{document}