How is Kana sensitivy applied to non-Japanese letters?

Question

Why is Kana Sensitivity applied to Latin and Cyrillic collations? i.e. "_KS" in, for ex., Latin1_General_100_CS_AI_KS

I tried to search for Kana and get exactly what I expected:

When Japanese kana characters Hiragana and Katakana are treated differently, it is called Kana sensitive.

How is it applied to Latin letters?
What am I loosing avoiding Kana sensitivity and where is it necessary?