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This is really cool and reminds me a bit of Mandos which does full disk encryption on headless servers using a network host.

The Readme didn't mention, can this be configured to SMS me when an encryption key is handed out?

You can have an SNS topic configured to message you on a key creation event via Lambda worst case. We’re talking maybe seven lines of code here.

It uses the GenerateDataKey API against a single master key.

At the client side, yes, could send an SNS notification, or otherwise go indirectly via a Lambda.

Or, alternatively, stream CloudTrail logs through Lambda to achieve a similar result.