Chiefs will face the new club at Cape Town Stadium on August 26 - three days after opening their 2016/17 Absa Premiership campaign against title rivals Bidvest Wits at Bidvest Stadium.
City, who bought the topflight status of Mpumalanga Black Aces, are led by former Orlando Pirates coach Eric Tinkler and owned by ex-Ajax Cape Town boss John Comitis.
Katsande suspects their opponents will be well prepared under the experienced duo's tutelage.
"They have a good coach in Tinkler and also a very experienced technical team," said the tough-tackling Zimbabwean.
"The boss John Comitis knows the PSL very well and will make sure his team is competitive.
"Therefore we cannot take them lightly and still have to be on top of our game," concluded Katsande, who has been registered as a non-foreigner this season.