Details of Gary Anderson’s interviews with police were heard by the jury at Derry Crown Court, sitting in Coleraine, on Monday.
The court heard Gary Anderson made a prepared statement during his fifth interview with police.
He had said he stayed behind in a house looking for his tooth after it was knocked out during an alleged assault while his brother Sean Anderson and Michael Dunlop ran outside.
Mr Anderson told police that, when he came outside, he could see two people at the top of the street and, then, saw them run back down again.
He told police that, by the time he reached the scene, Mr Kelly was on the ground and Sean Anderson “was on top of him”.
He, then, told police that he saw Sean Anderson “throw a knife down”’ and also that he saw another knife already on the ground.
Gary Anderson told police he lifted both knives, took them to a house and left them on a kitchen counter.
He said he, then, went to the toilet and, when he came downstairs, Sean Anderson was in the house and the knives had gone.
A police officer asked Gary Anderson whether he worried about what was happening and he said that he was “just in case the knife had been used”.
He was asked how Mr Kelly appeared when he saw him and he said he was still alive at that point.
Gary Anderson was asked whether he saw any blood on Mr Kelly and he said there was blood on his chest area.
The trial continues.