Kate ...
Kittly litter slows down the drainage so that the plants have time to take up the moisture. It also improves the general moisture in the soil so that bacteria, worms and such have a moister habitat.
During our long drought, I noticed that I had a smaller earth worm population in the beds even tho' they were mulched. That's because the water I used in the garden was being sucked down by the dryer soils down deeper.
Of course, adding organic materials is what feeds the soil critters, but the kitty litter kind of compensates for the sandy soil being unable to hold moisture. Of course, if you use too much, you can end up with a soggy mess.
As far as I know, kitty litter has no impact on the pH. Of course, that depends on what is used to make the cat litter.
Smiles,
Lyn
Edited to correct signing off twice ... oops !