Takaful & Karama

Takaful Program

Takaful is a family income support policy that is aimed to produce human development outcomes, specially nutrition, maternal and child health, and school retention and advancement at least of completion of secondary education. These are development goals and not only “protection” outcomes.

Takaful is not only income support, is a pact with conditions for both: families and State. State is obliged to service provision in health and education as well as providing income support. Households also assume commitments and responsibility. Income support (benefit delivery) is conditioned on compliance with these commitments.

Karama Program

Karama is a social inclusion policy for most vulnerable and in need persons in society and is fair to be foundation building block for a new social protection system in Egypt.

Karama assumes two key changes that may constitute a major reform in this policy: objective targeting using a system-based statistical formula to identify households living in poverty conditions, and a certificate of permanent total disability.

Therefore, these Programs have been considered as a two-arm strategy for those most in need and with higher necessity. Objective targeting is a sine-qua-non change that will produce better outcomes in current context of subsidy reform.

Conditional Cash Transfers (CCTs):

The premise is that the cash transferred increases the family’s purchasing power on the short-term, and the conditions break down the reproduction of poverty on the long-term, allowing families to partner with the state in their own development. The transfer is a resource that allows families to access health and educational services at less of a burden.

Program Targeting and Conditionality

Within the course of MoSS developed Social Protection System, targeting will be done on two stages, geographic followed by household proxy means targeting.

Eligibility and Selection of Beneficiaries

  1. Eligibility Criteria For Takaful: Households living in poverty with one up to three children 0 – 18 years old are eligible.
  2. Eligibility Criteria For Karama: Individuals living in poverty up to three members in the family that are 65 years old or more, or that have permanent total disability, are eligible.

A and B. MOSS started gradually roll out both Programs simultaneously on a selected group of Districts with highest poverty conditions. Only households or  with permanent residence on these districts will be eligible. The list of Districts will be widely diffused by MOSS.


In both cases, Takaful and Karama, households with at least one member currently receiving a social pension from MOSS are not eligible. To be enrolled in Karama and Takaful, all members in household should resign to other social pensions.

  1. Takaful Benefit Scheme

Households deemed eligible for Takaful will receive a family income support in relation to number of children in households and their school grade, according to following table:

Household composition

Monthly HH income support

Basic benefit for all households

325 LE

For each child in primary school grades

60 LE

For each child in preparatory school grades

80 LE

For each child in secondary school grades

100 LE


  1. Karama Benefit Scheme

Individuals deemed eligible for Karama will receive a cash transfer according to number of eligible beneficiaries in household according to following table:

Household composition

Monthly Cash Transfer

1 eligible beneficiary

350 LE

2 eligible beneficiaries

700 LE

3 eligible beneficiaries or more

1050 LE


Karama beneficiary need to provide proof of life of elder persons in cycles of 6 months. Every year in April and October, independently of day of registration, all eligible members in Karama program need to present themselves personally to designated Post Office or other locations approved by MOSS.

The impact of developing Social Protection programs is:

“50% of the poor moved out of poverty and equitable services are made available to all citizens in target areas to improve human and economic development indicators.

The results expected from the program are divided into three levels, short-term intermediate and long-term detailed as follows:


  • By 2016, 40% of poor families are protected from severe economic shocks and vulnerabilities.
  • By November 2015, enrolment and retention rates of children in education are improved with at least 30%.
  • By November 2015, women and for children under six years old have improved health indicators by 50%.
  • By end of 2015, access and utilization of preventive maternal health care is increased with at least 40%.

Short term-Outcomes

  • Malnutrition indicators of children are decreased in target areas by 15%.
  • Accessibility to and quality of current public education and health services are improved by at least 30%
  • Available data and information on social development is available and regularly updated.

Long-term outcomes

  • Improved effectiveness and efficiency of an equitable social protection system in Egypt.
  • Improved social behaviour and norms of families to adopt social protection values and practices.
  • Policies on integrated social protection systems are activated and are regularly monitored.