The Frenchman undertook his medical within the last 24 hours and put pen to paper on a five year, £120,000-a-week deal.
Kante follows Michy Batshuayi as new boss Antonio Conte's second signing since taking over at Stamford Bridge this summer.
"I am so happy to have signed for one of the biggest clubs in Europe. It’s a dream come true for me," Kante told the club's official website.
"The opportunity to work with Antonio Conte, a brilliant coach, and some of the best players in the world was simply too good to turn down.
"My first season in English football was very special and now I hope to go on to achieve even more during my time as a Chelsea player. I am looking forward to meeting up with my new team-mates and helping the club achieve a lot of success."
Foxes boss Claudio Ranieri had urged France anchorman Kante to make his mind up over his future after being offered a new deal before Euro 2016.
But the 25-year-old informed Ranieri he wanted to quit the King Power for Stamford Bridge, turning his back on Champions League football in the process.
Chelsea boss Antonio Conte confirmed at his unveiling on Thursday that he was eyeing up to three further signings to bolster his squad, having already landed £33m striker Michy Batshuayi from Marseille.
Kante, one of the standout stars of the title-winning campaign, is a huge set-back for Leicester.
However, the blow will be cushioned by the £23.4m profit they make on Kante, having signed him for just £5.6m from Caen last summer.
He was an instant hit after joining from French side Caen last summer and played a massive part in their shock and historic title win.
Conte also wants to bring in a defender and second striker. Napoli’s Kalidou Koulibaly, Everton’s John Stones and Juventus’ Leonardo Bonucci are among the Blues’ centre-back targets.
Chelsea also have a £25m offer on the table for Santos’s Brazilian wonder-kid striker Gabriel Barbosa.
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