The former Australian batsman will be assisting Jacques Kallis who was recently announced as the head coach.
Welcoming Katich on board, Kallis said: "It is great to have Simon on my management team. I have played many games against him and his understanding of the game is very good. He is a great asset to have and I really look forward to formulating plans with him and the rest of the team to help KKR to another title in 2016."
The 56-Test veteran used to open the innings for Australia and Perth Scorchers and was also a handy chinaman bowler. Katich also led his Big Bash League side Perth Scorchers to the title in 2014 before hanging up his boots.
The 40-year-old now works with Australian Football League's club Western Sydney Giants as Operations manager.
Making the announcement CEO & MD of KKR Venky Mysore said: "Katich is a great addition to 'Team KKR'. I am sure his T20 experience as well as his well organised coaching skills will come in handy for the KKR players."