This is very simple GTK+ terminal emulator with XEMBED socket for embedding virtual keyboard. It relies on VteTerminal library and works with matchbox-keyboard. Kterm supports xterm-like "-e" option for running command in terminal. Some initial settings may be defined in kterm.conf file. It is located in the same directory as main binary. Kterm is developed for Kindle Touch. I tested it under 5.3.2 firmware. It is reported to also work on Kindle Paperwhite.
Run kterm -h for all command line options
Menu pops up when you tap terminal area with two fingers (equivalent of middle mouse button click). I don't think I will add many more features, as it is to be simple.
I prepared binary package for download with kterm and matchbox-keyboard. You should use this package with Unified Applications Launcher. First install the launcher then unzip my package to extensions folder. Then start launcher and choose kterm from menu.
If you want to build it yourself just download source package, unpack it and run make. You will need vte library.
By the way, kterm should work on any linux machine with GTK+ and libvte. Here is a screenshot from a desktop machine.