KH is carbonate hardness. Calcium, IOWs. It does have an effect, especially for inverts who need it for their shells. For some fish it's also vital, such as the Rift lake cichlids that need high carbonate levels and all fish must osmoregulate, and buffers in the water help with this too.
Calcium is not the only mineral that can act as a buffer, but it is the most common one, especially in alkaline waters. GH is general hardness, all the minerals in the water. If GH Is good then you have some other mineral, maybe magnesium, which may be doing some buffering for you.
Read up on water chemistry and buffering. It's a bit complex, but there are some very good articles, at varying levels, that you can read to help understand it.
Typically, low to no KH is associated with ph swings that can be very harmful to fish.