KFN Kkr Financial Holdings Llc

CUSIP No. 48248A306
 ---------

1. Names of Reporting Persons/ I.R.S. Identification Nos. of Above Persons
 (entities only):
 LEON G. COOPERMAN

----------------------------------------------------------------

2. Check the Appropriate Box if a Member of a Group (See Instructions)

 (a) [_]
 (b) [X]
-----------------------------------------------------------------

3. SEC Use Only

-----------------------------------------------------------------

4. Citizenship or Place of Organization:

 UNITED STATES

-----------------------------------------------------------------

Number of 5. Sole Voting Power: 9,167,354
Shares Bene-
ficially 6. Shared Voting Power 6,518,213
Owned by
Each Report- 7. Sole Dispositive Power: 9,167,354
ing Person
With 8. Shared Dispositive Power 6,518,213

-----------------------------------------------------------------

9. Aggregate Amount Beneficially Owned by Each Reporting Person:

 15,685,567
-----------------------------------------------------------------

10. Check Box if the Aggregate Amount in Row (9) Excludes
 Certain Shares [_]

-----------------------------------------------------------------

11. Percent of Class Represented by Amount in Row (9):

 9.9 %
-----------------------------------------------------------------

12. Type of Reporting Person

 IN
-----------------------------------------------------------------




 2

CUSIP No. 48248A306
 ---------


This statement is filed with respect to the Shares of KKR FINANCIAL HOLDINGS LLC
(the "Issuer") beneficially owned by LEON G. COOPERMAN as of December 31, 2009
and amends and supplements the Schedule 13G previously filed ( the "Schedule
13G"). Except as set forth herein the Schedule 13G is unmodified.


Item 4. Ownership:


Item 4(a) (b) Amount Beneficially Owned and Percent of Class:

 Mr. Cooperman may be deemed the beneficial owner of 15,685,567 Shares which
constitutes approximately 9.9% of the total number of Shares outstanding. This
is based on a total of 158,359,757 Shares outstanding as reported on the
Company's Form 10-Q for the quarterly period ended September 30, 2009.

 This consists of 2,908,130 Shares owned by Capital LP; 659,425 Shares owned
by Investors LP; 999,195 Shares owned by Equity LP; 2,400,604 Shares owned by
Overseas; 6,518,213 Shares owned by the Managed Accounts; 2,000,000 Shares owned
by the Foundation; and 200,000 Shares owned by Mr. Cooperman.


Item 4(c). Number of Shares as to which such person has:

 (i) Sole power to vote or to direct the vote: 9,167,354

 (ii) Shared power to vote or to direct the vote: 6,518,213

 (iii) Sole power to dispose or to direct the disposition of: 9,167,354

 (iv) Shared power to dispose or to direct the disposition of: 6,518,213


Item 5. Ownership of Five Percent or Less of a Class:

 This Item 5 is not applicable.



 3

CUSIP No. 48248A306
 ---------


Item 6. Ownership of More than Five Percent on Behalf of Another Person:

 This Item 6 is not applicable.


Item 7. Identification and Classification of the Subsidiary Which Acquired the
 Security Being Reported on by the Parent Holding Company:

 This Item 7 is not applicable.


Item 8. Identification and Classification of Members of the Group:

 This Item 8 is not applicable.


Item 9. Notice of Dissolution of Group:

 This Item 9 is not applicable.


Item 10. Certification:

 By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
Issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having such purpose or effect.


 SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.


DATED: February 3, 2009 as of December 31, 2009


LEON G. COOPERMAN, individually,
and as Managing Member of Omega
Associates, L.L.C. on behalf of
Omega Capital Partners, L.P.,
Omega Capital Investors, L.P.,
Omega Equity Investors, L.P.,and
as President of Omega Advisors, Inc.


By /s/ ALAN M. STARK
 ------------------
 Alan M. Stark
 Attorney-in-Fact
Power of Attorney on file


ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL
CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001).




 4