**Exhibit 31.2**

**Certification**

**I,* *JeffreyB. Van Horn,** certify that:

1.                 I have reviewedthis Annual Report on Form 10-K of KKR Financial Corp. (the “Corporation”);

2.                 Based on myknowledge, this report does not contain any untrue statement of a material factor omit to state a material fact necessary to make the statements made, inlight of the circumstances under which such statements were made, notmisleading with respect to the period covered by this report;

3.                 Based on myknowledge, the financial statements, and other financial information includedin this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the Corporation as of, andfor, the periods presented in this report;

4.                 The Corporation’sother certifying officer and I are responsible for establishing and maintainingdisclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and15d-15(e)) internal controls over financial reporting (as defined inExchange Act Rule 13a-15(f) and 15d-15(f)) for the Corporation and have:

(a)          Designed such disclosurecontrols and procedures, or caused such disclosure controls and procedures tobe designed under our supervision, to ensure that material information relatingto the Corporation, including its consolidated subsidiaries, is made known tous by others within those entities, particularly during the period in whichthis report is being prepared;

(b)         Designed such internalcontrol over financial reporting, or caused such internal control overfinancial reporting to be designed under our supervision, to provide reasonableassurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generallyaccepted accounting principles;

(c)          Evaluated theeffectiveness of the Corporation’s disclosure controls and procedures andpresented in this report our conclusions about the effectiveness of thedisclosure controls and procedures, as of the end of the period covered by thisreport based on such evaluation; and

(c)          Disclosed in this reportany change in the Corporation’s internal control over financial reporting thatoccurred during the Corporation’s most recent fiscal quarter that hasmaterially affected, or is reasonably likely to materially affect, theCorporation’s internal control over financial reporting; and

5.                 The Corporation’sother certifying officer and I have disclosed, based on our most recentevaluation of internal control over financial reporting, to the Corporation’sauditors and the audit committee of the Corporation’s board of directors (orpersons performing the equivalent functions):

(a)          All significantdeficiencies and material weaknesses in the design or operation of internalcontrol over financial reporting which are reasonably likely to adverselyaffect the Corporation’s ability to record, process, summarize and reportfinancial information; and

(b)         Anyfraud, whether or not material, that involves management or other employees whohave a significant role in the Corporation’s internal controls over financialreporting.

| Date: February 23, 2007 |                                                                                            |
|------------------------------|-------------------------------------------------------------------------------------------------|
|                         | /s/ JEFFREY  B. VAN HORN                                                                        |
| ** **                   | **Jeffrey  B. Van Horn*Chief Financial Officer  (Principal Financial and Accounting Officer)*** |

 

----