Seems as if you should format your memory card. This should resolve the issue for you. Below is a link that shows the step-by-step information.
If this does not work, you may have to complete a factory reset of your device. This setting erases all data from your phone, including your Google or other email account settings, system and application data and settings, and downloaded applications. It will not erase current system software and bundled applications, or files stored on an optional installed memory card, such as music or photos. For this reason, please make sure the data on your device is backed up.
Here are the steps for a factory reset on the Kin TwoM:
Tap About Your phone
Tap Erase Phone Data
Thank you for your posting and have a good day!
Seeing as the KIN only has internal memory and no memory card formatting it would be a terrible idea. I was also trying to resolve this without reseting the phone since the KIN cannot backup its contacts. I don't see how this issue has been "resolved"