Bluetooth wireless keyboard issues after iOS 4.3 upgrade

I use the Kensington iPad case with wireless bluetooth keyboard, model K39294. Since the upgrade to iOS 4.3, the keyboard shows it is paired, but won't connect and the bluetooth icon on the iPad stays greyed out. To get them to connect and work I have to forget the device in the iPad settings/general/bluetooth menu and then re-pair them. The keyboard will work for a day, but then stops working again. The connect button on the keyboard doesn't resolve the issue either.

Any one else experiencing this issue and have a fix?