The South African football legend, who took charge of the Harambee Stars in March, is yet to register a victory after four matches - drawing against Gambia and Chad, and suffering defeats to Gabon and Chad.
However, McCarthy remains optimistic ahead of the tournament, which kicks off on 2 August and will be co-hosted by Kenya, Uganda, and Tanzania.
Kenya has been drawn into a tough Group A alongside two former champions, the Democratic Republic of Congo and Morocco, as well as Angola and Zambia - nations with strong footballing traditions on the continent. McCarthy, though, is embracing the challenge.
"When you become a coach, you know that to be the best, you must beat the best," McCarthy told CAF Online.
"We have a great opportunity in front of us. Facing two-time champions like the DRC and Morocco, a respected Angolan side, and a strong Zambian team will be a huge test - but we are ready."
The former Bafana Bafana striker believes playing on home soil gives Kenya an added edge, as his squad looks to make history.
"This is our time. We've assembled a hungry squad that's eager to succeed. What better place to start that journey than in your own backyard?"
McCarthy insists his ambitions are clear and adds that they expect big things from his players.
"Success means winning the tournament. Anything else is progress, yes - but our goal is the title. We've seen good signs from the players, and now we expect bigger things. We are going into CHAN as a team that fears no one."