Egypt increases ‘Takaful and Karama' funding to EGP 55bn for FY 2026

Daily News Egypt

11-05-2025

Prime Minister Mostafa Madbouly announced a significant increase in funding for Egypt's Takaful and Karama social protection programme, raising its allocation to approximately EGP 55bn for the fiscal year (FY) 2025/2026. The announcement was made during a ceremony marking the programme's 10th anniversary, held under the theme: 'Social Protection: Lessons from the Past Shape the Future.'
Madbouly emphasized the programme's rapid expansion, noting that it began with fewer than 2 million beneficiaries and an initial budget of just EGP 5bn. 'Today, we are allocating EGP 41bn in the current FY 2025, up from EGP 24bn the previous year. By next year, the allocation will reach EGP 55bn—roughly equal to what Egypt spent on all cash support programmes from 2011 to 2017, but concentrated in a single year for Takaful and Karama alone,' he said.
The Prime Minister underscored the government's commitment to supporting vulnerable citizens, stating: 'Support is not a favor—it is a duty to those who cannot earn a living. That's why we're expanding assistance across more than 22 social protection programmes, with a total budget of nearly EGP 635bn annually. The Ministry of Social Solidarity oversees 13 of these programmes.'
As part of efforts to institutionalize social protection, Madbouly highlighted the recent passage of the Social Security Law, ratified by President Abdel Fattah Al-Sisi and approved by Parliament. The law, expected to be implemented with executive regulations issued before year-end, grants Takaful and Karama subsidies the status of a legal entitlement. It also introduces mechanisms to prevent fraud and ensure accountability, contributing to the sustainability of Egypt's welfare system.
Looking ahead, the Ministry of Social Solidarity will launch a new economic empowerment initiative targeting Takaful and Karama beneficiaries. The programme, starting with EGP 10bn in initial funding, aims to improve living standards and boost income for vulnerable families through job creation and small-scale enterprise support.
'Despite our progress, we still dream of a future where poverty is eradicated in Egypt,' Madbouly concluded. 'One day, we hope to celebrate the graduation of the last family from Takaful and Karama—when support becomes no longer necessary because productivity has taken its place.'