For now, you may use it for free as part of the BETA and you may use it for dev/test purposes but not distribute it via ‘production’ apps via app stores or outside of Icenium.
Here is the word from the legal folks on using the Kendo UI Mobile framework as part of Icenium BETA.
i) For avoidance of doubt, the Telerik Kendo UI Mobile software (the “Kendo Software”) provided as part of the Beta Services is subject to the limitations set forth in these Terms and Conditions. You may not integrate the Kendo Software into end products or use it for any commercial, productive or training purpose. You may not redistribute the Kendo Software in any form.