Tembo has been promoted from his position as assistant coach, after holding the reins on an interim basis following the departure of Eric Tinkler in March.
The Zimbabwean tactician has been a long-serving member of the Matsatsantsa family, having joined the club back in 1999 as a player before moving into the coaching structures.
The Tshwane side enjoyed a promising run under Tembo's guidance at the end of last season, losing just two of the 11 matches he took charge of.
Having seen the side through pre-season, his permanent appointment has now been confirmed with a two-year deal by the club.
“Kaitano epitomises what it means to be a club man. He joined us as a player 19 years ago and has worked his way through our youth structures and subsequently into the first team as an assistant," said club CEO Stanley Matthews.
"He has steered us on a caretaker basis on three separate occasions and everyone at the club is committed to reciprocating his loyalty and his desire to win silverware.”
Upon his appointment, Tembo expressed delight at being afforded the long-awaited opportunity, as he promises to give his all for the club.
“I’m honoured by the confidence the club has shown in me in giving me this great opportunity," said Tembo.
"This club has been the center of my life for almost 20 years and I and my players will give everything we have to keep our run of success going.”
Club chairman Khulu Sibiya added: "It’s a great challenge for Kaitano because he knows we have high standards at the club. We will all rally behind him to deliver success because, above all, it's a team effort.”