Yes, ur mobo does support the kaby lake CPU(
https://www.msi.com/Motherboard/support/H110M-GRENADE.html#support-cpu ). It might need a BIOS update though. You could check more on that in the manufacturer website about the version that is needed for the kaby lake CPU. AFAIK, kaby lake doesnt offer much improvements than skylake for you to spend money on the newer CPU. i7 might help you if you're doing more editing and streaming while gaming and so on. Btw, carry on if you know what you're doing. Hope I've been helpful.