  Vortex fiber nulling (VFN) is a single-aperture interferometric technique for
detecting and characterizing exoplanets separated from their host star by less
than a diffracted beam width. VFN uses a vortex mask and single mode fiber to
selectively reject starlight while coupling off-axis planet light with a simple
optical design that can be readily implemented on existing direct imaging
instruments that can feed light to an optical fiber. With its axially symmetric
coupling region peaking within the inner working angle of conventional
coronagraphs, VFN is more efficient at detecting new companions at small
separations than conventional direct imaging, thereby increasing the yield of
on-going exoplanet search campaigns. We deployed a VFN mode operating in K band
($2.0{-}2.5~\mu$m) on the Keck Planet Imager and Characterizer (KPIC)
instrument at the Keck II Telescope. In this paper we present the instrument
design of this first on-sky demonstration of VFN and the results from on-sky
commissioning, including planet and star throughput measurements and predicted
flux-ratio detection limits for close-in companions. The instrument performance
is shown to be sufficient for detecting a companion $10^3$ times fainter than a
$5^{\mathrm{th}}$ magnitude host star in 1 hour at a separation of 50 mas
(1.1$\lambda/D$). This makes the instrument capable of efficiently detecting
substellar companions around young stars. We also discuss several routes for
improvement that will reduce the required integration time for a detection by a
factor ${>}$3.
