I think it's because they're not in the Opensats crowd ๐
It's the closest thing to SimpleX (gold standard secure chats) that nostr has surfaced, and it came out early too.
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I personally don't use KeyChat because when it first launched they came up with a large story about how they weren't going to allow you to use your current Nostr identity. It was weird. I didn't like it. Then they completely pivoted. I haven't tried the app since. The app is completely different now and obviously their original stance has changed. It's on me for not using the app, not them. For me it's out of sight, out of mind. I was turned off in the beginning and never looked back. I should revisit the app when time permits.