The KCM buffer makes target bacterial cells competent to take up naked pieces of foreign DNA. Preparation of competent cells is usually the first step in bacterial transformation protocol. Details of protocol is attached;
The KCM method is basically a modification of some earlier methods using PEG or PEG+DMSO to make the cells competent. Chung and Miller is usually the best cited reference, which used a similar formula to make the cells competent but without the KCM buffer during the transformation process. I think you are asking what is it that makes the cells competent, which is the PEG. But I can't provide a biochemical explanation of why. However it has been known since at least 1982, which is the earliest reference I know of for making E. coli competent with PEG.