He subsequently moved on to Partick Thistle and Queen of the South before joining Hartlepool United on a free transfer in August 1985.
He immediately became a regular in the York side, but in March 1990 moved back to Devon, joining Exeter City for a fee of £15,000.
Kelly left Ilfracombe in November 1997 to join Taunton Town, managed by former Torquay teammate Russell Musker.
He quickly settled into the side and was appointed captain, taking over as player-coach when previous assistant manager Derek Fowler stepped down in September 2000.
At the end of that season he played in Taunton's 2-1 FA Vase Final win over Berkhamsted Town at Villa Park.