Twala, who was released by Free State Stars during the current transfer period, joins the Chilli Boys as a free agent.
He left Chippa in 2016 to join Chiefs, but things did not work out for him at Naturena and he was loaned to Maritzburg United where he also struggled for game time.
He joined Ea Lla Koto as a free agent at the beginning of this season, but six months later, he was deemed surplus to requirements and was released.
The 28-year-old winger becomes the latest Chippa signing, with the club having also signed Gladwin Shitolo and Phetso Maphanga on loan from Pirates, as well as Bangaly Keita and Donashano Malama.
The Chilli Boys have parted ways with Thami Sangweni, Jabulani Shongwe, Thabo Nthethe, Nkosinathi Mthiyane, Zephaniah Mbokoma, and Miguel Timm this transfer period to make way for the new recruit.
Chippa are currently second from bottom with 15 points in 18 matches.
They next face Mamelodi Sundowns in the Nedbank Cup last-32 at Nelson Mandela Bay Stadium on Saturday.