The Citizens were pitted against Amakhosi during Wednesday's draw and Mthembu feels they got a good draw as they will have to step up their game.
“I think it’s better to tap at a higher level from the beginning. If you start a cup slow it gives complications, but when you start with big games it gives you confidence early on," Mthembu told the media.
“So, it is good for us to start with Kaizer Chiefs. We have to step up our game. We have been doing well but it is a matter of using our chances and defending better.
"It is a good draw for us, especially because we will be home,” the former Lamontville Golden Arrows centre forward continued.
The 32-year-old player admitted City need an improved mentality if they are to clinch some silverware this season with the Mother City side having blown hot and cold.
“We have to change our mental attitude towards games. At some situations, we have to make war and sometimes we have to play smart," he said.
"We have to get the balance right. We have to know when to play smart and when to go in for the kill.
City are used to winning major trophies having lifted two since the club's formation in 2016 and Mthembu explained they are always hungry for success.
“This is the right chance for us to get our yearly dosage of cup victory. When you look at City, we play well in big games. We are hungry for success," he added.
“The beauty of cup games is that you don’t have to be fancy you just have to put your heart in it and win it."
The PSL are yet to announce Telkom Knockout fixture dates, venues and kick-off times, but the tournament is scheduled to start on October 18.
City will be seeking revenge against Chiefs, who secured a 2-1 win in a PSL match earlier this season in the Mother City.