CloudFormation - Not able to create KMS - amazon-web-services

Question

I am trying to create a KMS Key using Cloudformation unfortunately I am not able to create it. In the console I am getting the following error :
null (Service: Kms, Status Code: 400, Request ID: 156b452d-8ffb-5517-9jbc-a6yh6e3a79, Extended Request ID: null)
I am not able to understand the root cause of the issue. Please refer to the attached template which I am using to create the KMS :
AWSTemplateFormatVersion: 2010-09-09
Description: Testing KMS Using CloudFormation
Resources:
KMSEncryption:
Type: AWS::KMS::Key
Properties:
Description: KMS-Key
KeyPolicy:
Version: '2012-10-17'
Id: encryption-key
EnableKeyRotation: 'True'
PendingWindowInDays: 7
Statement:
- Sid: Enable IAM User Permissions
Effect: Allow
Principal:
AWS:
Fn::Join:
- ''
- - 'arn:aws:iam::'
- Ref: AWS::AccountId
- :root
Action: kms:*
Resource: '*'
- Sid: Allow use of the key
Effect: Allow
Principal:
AWS:
Fn::Join:
- ''
- - 'arn:aws:iam::'
- Ref: AWS::AccountId
- :role/
- !Ref KMSLambdaRole
Action:
- kms:DescribeKey
- kms:Encrypt
- kms:Decrypt
- kms:ReEncrypt*
- kms:GenerateDataKey
- kms:GenerateDataKeyWithoutPlaintext
Resource: '*'
- Sid: Allow administration of the key
Effect: Allow
Principal:
AWS: arn:aws:iam::xxxxxxxxx:user/Shiv
Action:
- kms:Create*
- kms:Describe*
- kms:Enable*
- kms:List*
- kms:Put*
- kms:Update*
- kms:Revoke*
- kms:Disable*
- kms:Get*
- kms:Delete*
- kms:ScheduleKeyDeletion
- kms:CancelKeyDeletion
EncryptionAlias:
Type: AWS::KMS::Alias
Properties:
AliasName: 'Testing'
TargetKeyId:
Ref: KMSEncryption
KMSLambdaRole:
Type: AWS::IAM::Role
Properties:
RoleName: 'TestingKMSAccess'
AssumeRolePolicyDocument:
Statement:
- Action: ['sts:AssumeRole']
Effect: Allow
Principal:
Service: [lambda.amazonaws.com]
Path: /
ManagedPolicyArns:
- arn:aws:iam::aws:policy/ReadOnlyAccess
Policies:
- PolicyName: AWSLambdaBasicExecutionRole
PolicyDocument:
Version: 2012-10-17
Statement:
- Sid: SQS
Action:
- 'sqs:SendMessage'
- 'sqs:SendMessageBatch'
Effect: Allow
Resource: '*'

Answer 1

Your EnableKeyRotation and PendingWindowInDays should be outside of KeyPolicy:
Resources:
KMSEncryption:
Type: AWS::KMS::Key
Properties:
Description: KMS-Key
EnableKeyRotation: 'True'
PendingWindowInDays: 7
KeyPolicy:
Version: '2012-10-17'
Id: encryption-key
# the rest
Note, that there could be other issues which are not yet apparent, e.g. non-existing principles.