Seems that Google is full on the "Extinguish" phase with Android.
edit: amazing that I'm being downvoted for stating facts yet nobody replies to me.
It's a platform feature, so it's open source, but there's always a delay between the announcement and the time the code hits the public repositories. It'll be there before too much longer.
Note that you are trusting this app with your private key. While other apps are sandboxed away from having access, all it takes is one update to the app to sneak away your private key to any remote server. You have to trust the publisher of this app, including their entire chain of source code repository management and app build/release process. It takes a single instance of a malicious person inserting code that steals all users' private keys (disgruntled employee at this company, or social engineering attack to gain access to commit to their GitHub, etc.).
It's the same reason I am horrified that anyone trusts password managers from for-profit companies. Those companies have unfiltered potential access to your entire online identity, including critical logins like your bank and government services. The app is sandboxed, and the company promises that your (unencrypted) credentials never leave the local device. But it is impossible for them to offer an absolute guarantee that their app will never be the target of an attacker slipping in code that steals information.
In this particular case, you're giving a single app access to potentially expose your key to theft. Less risky than storing your key in the default ~/.ssh/id_rsa, where any app running on your desktop machine has access to read it. Also likely to be less devastating of a loss compared to the compromise of the contents of a password manager.
On Android, the Kryptonite code uses the AndroidKeyStore to store the private key, which means that the app does not have access to it. At a minimum (on old devices), AndroidKeyStore keeps the private key material in a separate process, so it never exists in the app's process space. On newer devices (launched with M or later), the private key material is kept in the Trusted Execution Environment, so nothing in Android user or even kernel space has access to it.
EDIT: Actually, there's one small flaw in the Kryptonite code that may make the private key accessible to a sophisticated attacker who compromises the app. The key allows signing without using a hash function. Signing a sequence of carefully-chosen plaintexts can reveal the private key. I filed an issue and sent a pull request.