In scenes to be aired tonight, Katie gives her frank view after housemates are told by Big Brother that former Corrie star Ken has been booted out and will not be returning.
While Perez cries tears of relief at Ken's ejection, Katie lays into the US blogger and accuses him of "getting rid" of the pensioner.
Explaining why she is angry to Patsy Kensit, Katie says: "Because the guy came into the house and Perez got rid of him.
"The process should be that people get evicted by the public and not get censored out of here.
Former Apprentice star Katie, who is famed for speaking her mind, then goes on to say that people are "self-censoring" and accuses the Channel 5 show of being a "flawed social experiment".
Nadia Sawalha discusses Katie's comments with Perez and he claims Ken's departure is her cue to "take centre stage".
But, while talking about Perez's background and rise to fame with Calum Best, Chloe Goodman and Keith Chegwin, Katie is not so polite. She exclaims: "What you see is the sad demise of a raving lunatic."
Actor Ken was removed from the CBB house yesterday (Monday) following a prior warning about his behaviour and language.
Viewers saw him pass several derogatory comments about the female housemates, make a slur about Patsy's part-English-part-Irish heritage and use the racist word "negro" when discussing Frank Bruno. He was then told to leave by Big Brother.
Tonight, it is rumoured that a new housemate will enter Celebrity Big Brother following the departure of Ken and former Baywatch actor Jeremy Jackson - who has been defending himself on TV today.