Do I have to pay taxes on my winnings?
Under Kenyan law, all lottery winnings are subject to a withholding tax of 20%. That means that the lottery operator (us) must take 20% out of every win and pay it to the KRA, and only the remaining 80% will be paid out to the winners.
At LottoPawa, you’ll be excited to know that we have decided that we will cover the 20% withholding tax for ALL smaller winners (i.e. for winnings lower than KSH 20 million).
It means that, unless you win one of the top two prizes (can you imagine!?), you will get the full prize and we will pay the tax for you.
Only if a player wins the first-tier prize of KSH 200 million, or the second-tier prize of KSH 20 million, we will have to deduct the withholding tax of 20% first, and pay the rest to the customer. That’s just how it is… but we imagine you’ll have more luxurious things to bother yourself with!
The withholding tax is the only tax on lottery wins. You will not have to pay any additional income taxes on a lottery win – so you can take your bundles of cash and spend it just how you please!