Despite taking a 10th minute lead through Makabi Lilepo at the FNB Stadium, goals from Matome Mathiane (41') and Daniel Msendami (70') secured the result for the travelling team.
The result saw Amakhosi drop one place into ninth with 30 points from 25 games, level with Chippa United in eighth and with Gallants in 10th.
Chiefs have just five games to secure their place in the top eight, alongside a Nedbank Cup final with Soweto rivals Orlando Pirates, but Nabi admits his team ‘have lost their way'.
He said on SuperSport after the game: "Unfortunately the situation is very bad and we have to accept it, no excuses.
"The most worrying thing is not the result. We have even lost our way of playing. That is even more concerning."
Chiefs are next in action against Pirates in the Betway Premiership next weekend, ahead of their final appearance.
Nabi added: "We were not our best. The most important thing is the result and the result is not in our favour and we are in a very difficult position today.
"Our log standing (league position) is not very good."
Ahead of Saturday's Soweto Derby clash against Orlando Pirates, former Kaizer Chiefs captain Itumeleng Khune has again voiced concern over the club's goalkeeping department.
Kaizer Chiefs head coach Nasreddine Nabi has shared what he conveyed to his players after their disappointing 2-1 loss to Marumo Gallants in the Betway Premiership on Saturday afternoon at FNB Stadium.
Marumo Gallants coach Abdeslam Ouaddou admits he feels sympathy for under fire Kaizer Chiefs boss Nasreddine Nabi.
Kaizer Chiefs' struggles in the Betway Premiership continued as the Soweto-based outfit were edged 2-1 by Marumo Gallants at FNB Stadium on Saturday.
