Nkosi has played 15 games for AmaKhosi this season, scoring three goals in the process and the club felt it was only right to reward him with an improved deal
Nkosi agreed to a two-year extension earlier this week and he can now focus on helping the team defend their Nedbank Cup and PSL titles.
Goal reported late last year that Nkosi will be offered a two-year deal to his existing contract that was set to expire at the end of June despite media reports that he will be offered a one-year extension.
The 32-year-old former Bloemfontein Celtic man is in his second spell with AmaKhosi having left the Naturena-based side in 2007 to join Bundesliga outfit Arminia Bielefeld, before moving to Israel to join Maccabi Netanya.
He then returned to South Africa to sign with SuperSport United in 2009. Nkosi was on the books of Golden Arrows when Chiefs approached him for the second time in his career.
The Newcastle-born veteran midfielder has been involved in five goals so far this season - scoring three goals and providing two assits in the 15 games that he has played.
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