I'm not sure if BD is a good idea, since if Kanji goes for a grab I would think you would go through his invinceframes, and then he'd just grab you when you land.
Once Kanji gets in, do not god damn tech immediately. Delay your tech or don't tech at all and surprise them with a 5A or something. Once you condition them to this, you can often tech right through a pickup they may try, or screw their grab timing up. Eventually it may be safe enough to start trying to tech immediately again. Jump in the air and air dash sparingly, or you'll get caught with one of the two AA throws he's got. Whenever Kanji jumps, be on guard for his j.214A/B. If you're paying attention, it's not too hard to crouch it on reaction, and then make them eat something big. It seems you can also beat it out with 2B, but I don't see a reason to risk it, you can get a clean ground CH of whatever you want to punish if you crouch it.
If you get paralyzed, it's usually best to just suck it up and stay still and block. Kanji still has to respect you since you can still do 214A/B/C/D, which covers a fair distance to nail him if he thinks you're free bait and just charges in recklessly. Also be wary of using zio from mid-full screen. He might catch you with your pants down with a lightning strike or the air to ground grab.