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Yawn. The Z1 compact is pretty much better in every way, as well as being cheaper ( http://store.orange.com/za/mobile-phones/sim-free-phones/sony-xperia-z1-compact-black-257572/ ).
I see it's only got Android 4.3 though, can it be upgraded to the latest KitKat?
Yup, but it probably won't go further, Sony will release a new model and completely forget they had any models prior. That does seem to be their M.O. Or maybe they will surprise and actually keep updating the Z series.
My Xperia s had it's last update about a month before my upgrade expired.
So basically 26 to 28 months from launch more or less.