No, keychain syncing is not part of iCloud. It was part of dot mac syncing, but that is no longer available.
There will probably be feedback on whether this is a good idea or not (automatically moving passwords from one device to another), especially in the situation where multiple people share an iCloud account (likely, but not guaranteed these days).
If you feel that storing the password on the device's keychain (and thus requiring the user to enter it at least once per device), then you will need to provide your own encryption and safety and store the data in iCloud directly, such as in the keystore.