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Well, it's not like we didn't suspect this to be the case, but a confirmation of sorts is always welcome:

Intel Z370 Chipset Could Support Kaby Lake - But Intel Will Not Allow It
http://www.guru3d.com/news-story/intel-z370-chipset-could-support-kaby-lake-but-intel-will-not-allow-it.html
Much has been said and spoken about Intel upcoming 6-core Coffee Lake processors. It will launch based on a LGA 1151 Socket. We’ve been able to confirm that Z370 will only support Coffee Lake processors. Here’s the shocker, they could support Kaby Lake, yet Intel doesn’t allow it.

Over the past few weeks I have been talking to many motherboard manufacturers, and the story is the same. There is no reason for the Z370 chipset to not be able to support last-gen Kaby Lake, it is merely firmware restriction. Intel is enforcing the motherboard manufacturers to only support Intel 8th gen processors, thus Coffee Lake on Z370.

We’ve seen it in the past though, a BIOS update all of the sudden might enable other processors. The board-partners are very tight-lipped about this, understandably. Earlier this week you have already seen our Dutch colleagues from HWI try out a 7th gen Celeron G3930 Kaby Lake based processor on Z370. That processor got in the BIOS post code up-to code 26 when it halted. Post code 26 is the graphics pass, all passes before that would have been valid including memory and CPU.