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You are half correct.
Hosts can kick/ban in the lobby pretty much straight out just like you said, but during a game a person can only be kicked if at least three players vote to kick - this would need to be done during a meeting when the chat window is available.
If/when that happens, the person is kicked out and the game reports that the host has kicked that person, even if the host did not vote for it.
You are looking in the wrong spot - the kick and ban options are both in the same spot, in the lobby and in the game.
When you can see the chat window, click the red report button, as though you are going to report for cheating/hacking/inappropriate name, etc. The kick/ban buttons are at the bottom.