Kante, 24, is a Frenchman of Malian descent who was part of the Caen team that gained promotion to Ligue 1 in the 2013-14 season.
Leicester's website (www.lcfc.com) said Kante's contract was for four years but did not disclose the fee.
"The Foxes beat off firm competition to secure the signature of Kante, whose tenacious and tough tackling approach has seen him catch the eye of a number of teams across Europe," the club added.
A few hours later Leicester announced the signing of his compatriot Benalouane, a tall former France Under-21 international, as their fifth recruit of the close-season.
After coming through the ranks at St Etienne, Benalouane, 28, moved to Italy and played for Cesena, Parma and Atalanta.
Having avoided relegation last season under Nigel Pearson, who was nevertheless dismissed as manager, Leicester begin their Premier League campaign under new boss Claudio Ranieri against Sunderland on Saturday.
(Reporting by Steve Tongue; editing by Sudipto Ganguly)
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