James Kelly was born February 18, 1832 in Standish, England. He graduated from Clare College, Cambridge in 1854. In 1855 he was curate of Abington, Northamptonshire and the following year made chaplain to Horatio Powys, bishop of Sodor and Man. In addition, in 1860, he was made vicar of Kirkmichael, Isle of Man and served as registrar of the diocese.
On March 18, 1864 Bishop Feild wrote an appeal to England for clergy. James Kelly responded and was appointed incumbent of St John’s, Newfoundland and Archdeacon for the diocese. Bishop Feild had been asking for an adjuctor for some time and in 1867 nominated Archdeacon Kelly who was consecrated on August 25 at the Archiepiscopal Chapel Croyden by the Archbishop of Canterbury.
Bishops Feild and Kelly made several trips in the new mission ship The Star and were on board when it wrecked in 1871. Bishop Feild died in Bermuda in 1876 and Bishop Kelly succeeded him. In September of that year Bishop Kelly inaugurated a subscription to finish St John’s Cathedral in memory of his predessor.
Bishop Kelly was a poor sailor. Unable to perform the sea travel necessary and unable to secure a coadjuctor, he resigned the see in 1877. He returned to England becoming vicar of St Chad, then coadjuctor of the Diocese of Chester. In 1885 he became coadjutor of Moray, Ross, and Caithness and bishop the following year. On 29 Aug. 1901 he was unanimously elected primus of the Episcopal Church in Scotland. He resigned in 1904 due to ill-health and died 15 May 1907 in Inverness, Scotland.