-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 KP+SrWBrS7O+nv9X8l9UyK4nzvQZV1y8tRJqvRr5975i9x7wI/yxkgZJ2Fa9442/
 NdfBnuTAO1IaeGy5USY2QA==

<SEC-DOCUMENT>0001179110-06-021618.txt : 20061113
<SEC-HEADER>0001179110-06-021618.hdr.sgml : 20061113
<ACCEPTANCE-DATETIME>20061113201614
ACCESSION NUMBER:		0001179110-06-021618
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061113
FILED AS OF DATE:		20061113
DATE AS OF CHANGE:		20061113

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KKR Financial Corp
		CENTRAL INDEX KEY:			0001301508
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				201426618

	BUSINESS ADDRESS:	
		STREET 1:		555 CALIFORNIA STREET
		STREET 2:		50TH FLOOR
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104
		BUSINESS PHONE:		(415) 315-3620

	MAIL ADDRESS:	
		STREET 1:		555 CALIFORNIA STREET
		STREET 2:		50TH FLOOR
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Cowell Patrick
		CENTRAL INDEX KEY:			0001330712

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32542
		FILM NUMBER:		061210956

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(415) 315-3692

	MAIL ADDRESS:	
		STREET 1:		FOUR EMBARCADERO CENTER, SUITE 2050
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-11-13</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001301508</issuerCik>
        <issuerName>KKR Financial Corp</issuerName>
        <issuerTradingSymbol>KFN</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001330712</rptOwnerCik>
            <rptOwnerName>Cowell Patrick</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O KKR FINANCIAL CORP.</rptOwnerStreet1>
            <rptOwnerStreet2>555 CALIFORNIA STREET, 50TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>SAN FRANCISCO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94104</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-11-13</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1200</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>26.6067</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>19787</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Includes 8,587 shares of restricted common stock.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>David A. Netjes, as Attorney-in-Fact</signatureName>
        <signatureDate>2006-11-13</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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