Unable to add contact to SIM
After some investigation, I believe this in Android 4.4 issue. 

It seems to be designed to use only Google contacts, synchronized with Gmail. I could not find any option to even display SIM contacts - they can only be imported from SIM to Google. 

I know for sure, that in Android 4.2 devices, user can choose between location of contacts and can display all contacts, regardless of where they are saved.