The Ugandan international left Ingwe for a loan spell at KCCA (Uganda) after falling out with Coach, Robert Matano on disciplinary grounds.
Kateregga had an on field burst up with his boss after he was pulled out a few minutes after he was introduced as a second-half substitute in a tie against Bandari at Afraha Stadium last season.
Since then, the two parties enjoyed a frosty relationship that culminated in Kateregga leaving the club for a loan spell back in his native country. AFC Leopards did not renew his contract after it's expiry on December 31.
But the dreaded Ugandan is set to link up with former Kenyan Premier League colleague, Masoud Juma who also joined Cape Town City last week.
Kateregga is understood to have agreed a three-year deal with Bennie McCarthy side.