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Originates in the lands of Kelly near Arboath in Angus and in some cases is a shortened form of MacKelly.

In 1278, a bailiff to Alexander III was a William de Kellaw, an early Scottish bearer of the name. Another early bearer was recorded in 1338. Richard de Kellow was witness to a charter in Roxburghshire.
John de Kelly was abbot of Arbroath in 1373.
David Celle was 19th bishop of Cambuskenneth between 1445 and 1463, William Kelle held land in Kyntor in Aberdeenshire in 1498, and James Kelle was notary public in diocese of St. Andrew in 1526.
An old family of this name lived in Dunbar and apparently derived their name from an old spelling of Kello which later became a separate surname.

Captain John Kellie was retoured heir in lands in Berwickshire in 1659, and Nicol Kellie was burgess of Dunbar in 1688.
Convallus de Kelle who witnessed an instrument of sasine of the lands of Mernys and Netherpollock in 1454 probably derived his name from the lands of Kelly in the parish of Innerkip in Renfrewshire.