Mike, all manufacturers of CBUs recommend modified (ANSI A118.4) thinset mortars for use on their products. I'd also recommend a modified mortar for use over the painted drywall after you have abraded the surface.
Will the Kerabond mixed with water stick the tiles? Probably, but I'd still recommend you spend the 15 bucks for a bag of modified.
My opinion; worth price charged.
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