Software Update Version 5.1.2
Now given that my Kindle had just updated via WiFi in my home I did not see how my router could be the problem. I contacted support and their advice was to reset my router and restart my Kindle. I was not prepared to reset my router as my computer was connecting fine via WiFi so this had to be a software issue. I did do a restart on the Kindle myself and fortunately this resolved the issue of WiFi connection.
Kindle Support could not understand that it was their Software update that caused this issue and not my router as the Kinle touch was not showing any issues at all with WiFi connection. Their other advice was to contact my ISP to resolve this WiFi connection issue on the Kindle. Given that all other items in the house that are WiFi, eg computer, radio etc were still connected I was not prepared to contact my ISP as I know they would not give me any support for Kindle WiFi issues as it is not their product.
Needless to say I was not impressed with Kindle Support at all.
So my advice is if this happens to someone else after a software update to try the restart method and hopefully it will resolve the issue for you.
Yours thoughts on this would be appreciated. Rant over.