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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Td6UGVJ8AyqpanI4pA8zOLriMTDkfbNMaeKo/PYD7z2Uka34D1bN8HpzwiBBkx1A
 PkhDsm6CG7RnNsimIPwbXQ==

<SEC-DOCUMENT>0001179110-08-018210.txt : 20081015
<SEC-HEADER>0001179110-08-018210.hdr.sgml : 20081015
<ACCEPTANCE-DATETIME>20081015163518
ACCESSION NUMBER:		0001179110-08-018210
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081015
FILED AS OF DATE:		20081015
DATE AS OF CHANGE:		20081015

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KKR Financial Holdings LLC
		CENTRAL INDEX KEY:			0001386926
		STANDARD INDUSTRIAL CLASSIFICATION:	FINANCE SERVICES [6199]
		IRS NUMBER:				113801844
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

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

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

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			STROTHOTTE WILLY R
		CENTRAL INDEX KEY:			0001200084

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33437
		FILM NUMBER:		081125306

	MAIL ADDRESS:	
		STREET 1:		C/O CURTIS MALLET PREVOST
		STREET 2:		101 PARK AVE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10178
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-10-15</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001386926</issuerCik>
        <issuerName>KKR Financial Holdings LLC</issuerName>
        <issuerTradingSymbol>KFN</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001200084</rptOwnerCik>
            <rptOwnerName>STROTHOTTE WILLY R</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O KKR FINANCIAL HOLDINGS LLC</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></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Phantom Shares</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-10-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1768.02</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>9.44</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F1"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>1768.02</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>8495.95</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Each phantom share is the economic equivalent of one common share. The phantom shares become payable, in cash or common shares, at the election of the Company, upon the earlier of (i) the first day of January following the reporting person's termination of service as a director or (ii) an election date pre-selected by the reporting person, and in any event in cash or common shares, at the election of the reporting person, upon the occurrence of a change in control of the Company.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>David A. Netjes, as Attorney-in-Fact</signatureName>
        <signatureDate>2008-10-15</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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