The German champions travel to Anfield on Tuesday for the first leg of their last-16 meeting and the Bayern right-back is not feeling confident.
Jurgen Klopp led his side to the final last season, where they were beaten by Real Madrid, while this term they have set a ferocious pace in the Premier League by losing just once in 26 league games.
Bayern, meanwhile, trail Borussia Dortmund in the Bundesliga title race and the Germany international believes the Reds’ superior domestic form puts them in the box seat for a quarter-final place.
"Liverpool are the favourites," the 24-year-old told The Telegraph.
"They have lost one league game all season and have let in only 15 goals. But when you look at us, we are not as consistent as before.
"Now, it's a bit different. It's a chance to develop, to find new ways to success. We are close to Dortmund, in the quarter-finals of the DFB-Pokal, and still in the Champions League.
“So, not everything's bad. But we need to improve our style of playing before we can compare to the best teams in Europe."
Kimmich has also been impressed by the job his compatriot Klopp has done on Merseyside, with Liverpool aiming to win their first league title of the Premier League era under the German this season.
"It's amazing, the emotion he has on the field, with the fans," he said.
"You can see how he pushes his players to another level. Every player is better with this coach."
