The kibbutz was established on 20 May 1950 by a Nahal gar'in of Hashomer Hatzair members from France and Tunisia who had been trained in Beit Zera. It was established on land that had belonged to the Palestinian village of Hiribya, which had been depopulated during the 1948 Arab–Israeli War.^[2] Its name is derived from the Hebrew for vineyard (Hebrew: כרם, Kerem), which were common in the area.

In 1972 a blanket factory was established in the kibbutz.^{[citation needed]}

The kibbutz absorbed 54 families from the Elei Sinai and Nisanit Israeli settlements, which were evacuated as part of the disengagement plan.^[3] Since 2006 it has been repeatedly hit by Qassam rockets fired from the Gaza Strip, including one that landed on its football pitch, and another Qassam rocket that landed inside a house and injured 3 people severely in 2005.^{[citation needed]}