The Amani National Congress enrolled its first members on Saturday.
Former deputy Prime Minister Musalia Mudavadi intends to it use to vie for the presidency in 2017.
The party will now start a nationwide membership drive and will be launched later in the year.
The party recruited its first members at its headquarters in Nairobi yesterday.
Mr Mudavadi called on the government to institute electoral reforms before the next General Election.
“ANC will be contributing to deepening devolution. We support electoral reforms and the implementation of the gender rule,” he said.
About 300 UDF leaders from Nairobi defected to the new party yesterday. Mr Mudavadi quit UDF earlier this month.
He said he hopes to bring the Luhya together.
The party’s leadership has called for the dumping of the current electoral system in favour of a proportional system.
“The current voting system undermines the Constitution on “fair representation and equality of the vote” as a means of achieving parity in gender, youth, minority and people with disability,” he said.
The ANC leader said that unless the current system is abandoned, some peoples will never get a member of their ethinic group as president. He said the system only favours peoples with large populations.
“Seats for political parties should be allocated proportionally based on the total number of votes the party receives at the ballot. This will ensure that the total number of MCAs in the County Assembly and MPs in National Assembly and Senate will be proportionate to votes a party received,” said Mr Mudavadi.
“We want the voter to cast two votes: one for a candidate of their choice and one for a party. Only the party vote will translate into the number of nominees the party is entitled to nominate at all levels,” he said.
However, While Mr Mudavadi is working to resurrect his political career and rejuvenate his base ahead of the next elections after a dismal showing in 2013 elections, President Kenyatta is looking to gain a foothold in the western region.