Let $C'$ be point such that $M$ is midpoint of $CC'$ and $D'$ such that $N$ is midpoint of $DD'$. Point $E$ is intersection of $CD'$ and $C'D$.
Since $CM=MB=MC'$, $M$ is circumcenter so $CBC'$ is right triangle. Same goes for triangle $DD'B$.
Because quadrilaterals $MBAC$ and $BNDA$ are cyclic, it follows that
$\angle BMC= 180^\circ-\angle BAC=\angle BAD = 180 ^\circ-\angle BND = \angle BND'$, and from here you can easily find that right triangles $CBC'$ and $DD'B$ are similar.
Triangles $CBD'$ and $C'BD$ are similar because $\angle CBD' = \angle C'BD $ and $\frac{BC}{BC'}= \frac{BD'}{BD}$ (That follows from similarity of right triangles $CBC'$ and $DD'B$.)
$\Rightarrow \angle BCE= \angle BC'E$ so quadrilateral $CBEC'$ is cyclic and $\angle CEC'= \angle CBC'=90^\circ$.
Since $DC' \parallel KM$ and $CD' \parallel KN$ (because $KM$ and $KN$ are midsegments in triangles $CC'D$ and $CD'D$) , $\angle MKN=\angle CED = 90^\circ$ .