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He played for the University of New Brunswick from 1981 to 1986. After playing in Europe Kelly came home to pursue a coaching career. He was an assistant for the Prince Edward Island Senators in 1993-94 then became head coach of the Windsor Spitfires from 1994 to 1996.
In 1996 he returned to his alma mater to be New Brunswick's coach for two years and then went on to coach the North Bay Centennials for four seasons. He was also an assistant coach for Canada's national junior team. He was an assistant coach of the Brandon Wheat Kings in 2003-04 and the Manitoba Moose in 2005-06.