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Kit can be found to the east of the save point in Moonstruck Coast

Must have completed In Search of Father (I). You’re heading for Moonstruck Coast, with probably the closest town being Goldshore. Exit the town and start moving south, following the trail until you finally get to the Moonstruck Coast. Find the save point in the area and not far to the east will be Kit. He managed to find a lead on his father’s whereabouts, but he will need to leave the troupe in order to do so. Before leaving, though, he wants to help the troupe one last time, with absolutely no hint on what to do. However, if you speak with the woman directly to the west of him, she will mention about needing some lapis lazuli for some paint. In order to get this, travel to Grandport and look for the Traveling Merchant in between the shops. Steal/Purchase the Lapis Lazuli, then bring it back to Kit to finish the quest.