The 23-year-old joins the Citizens from KCCA FC, where he was on loan from AFC Leopards.
City boss John Comitis said coach Benni McCarthy was quickly sold on bringing in the player, who could help ease the recent departure of Aubrey Ngoma to log leaders Mamelodi Sundowns.
"I sat with Benni and we discussed the need for a left-footed playmaker and winger that could add something unique going forward," Comitis is quoted as saying on the club's Twitter feed.
"There were a few options for us in the market, but once Benni saw Kateregga play he basically just simply said 'this is the one'."
The title contenders have also added Bradley Ralani, Masoud Juma and Kwanda Mngonyama to their roster in the January transfer window.