The <kendo-upload> directive results in a div where drag and drop does work. You should be able to drag and drop your files on to the "Select File" button. 

If you want to show a more distinct drag and drop, I was able to do it by adding CSS styles to the <em> tag which exists under the "Select files" button, but is hidden. Try adding this CSS:

.k-upload {
    background-color: white;
}

.k-upload .k-dropzone {
    background-color: white;
    display: block;
}

.k-upload .k-dropzone .k-upload-button {
    margin: 5px 0;
}

.k-upload .k-dropzone em {
    display: block;
    visibility: visible;
    opacity: 1;
    padding: 20px 10px 100px 10px;
    border: 1px black dashed;
    border-radius: 3px;
    text-align: center;
    margin: 5px 0;
}


I do agree that it would be nice for something like this to be available right off the shelf. The entire "Select files" area should be customizable via a template.