Kante, 24, and Benalouane, 28, have both penned four-year deals and are the first signings by Claudio Ranieri.
The French midfielder helped Caen win promotion in 2013-14 and played 37 times in France's top flight last term.
Centre-back Benalouane is a former France Under-21 international but has opted to represent Tunisia.
Benalouane's move is subject to international clearance as well as Premier League and FA approval.
The double signing adds to new arrivals Robert Huth, Christian Fuchs and Shinji Okazaki at the Foxes, who finished 14th in the Premier League last season.
Leicester begin their Premier League season against Sunderland on Saturday.
Find all the latest football transfers on our dedicated page.
Leicester City have signed Yohan Benalouane from Italian side Atalanta and N'Golo Kante from French club Caen for undisclosed fees.