I\'m aware there is a similar question but the marked answer provides a link to an external library which requires several dependencies to be installed on the user\'s machin
You may take a look at WiX and more specifically the Microsoft.Deployment.Compression.Cab assembly. It has a nice API that allows you to do this:
CabInfo cab = new CabInfo(@"c:\Work\some.cab");
cab.Pack(@"C:\Work\folder");
It's dependent on the Microsoft.Deployment.Compression assembly which is standalone so you will need only those two assemblies.