On Wednesday, the trial heard that, in a police interview, Dunlop said Sean and Gary Anderson had stabbed Mr Kelly.
Dunlop, who also denies further charges of attempted grievous bodily harm and disposing of two knives believed to have been used in the attack, also told police he asked one of his co-defendants to stop stabbing the 35 year old.
The hearing was told that, in his first police interview, Dunlop was asked what part he played in the murder of Mr Kelly.
He told police: “I witnessed it just.”
When asked to explain further, he said: “I witnessed him getting stabbed.”
Police then asked who had stabbed Mr Kelly, to which Mr Dunlop responded: “Sean and Gary Anderson.”
The jury heard Dunlop told police he had been drinking with a friend when he was invited to go to the Andersons at about 1.30am.
Dunlop told police he got a taxi to the house and immediately went to the toilet.
He told police that, as he came down the stairs, he saw “two grown men” walking out the door.
He said Mr Kelly pointed at him and said, “Don’t be calling the cops”.
The interview heard that, as the men left the house, they were followed by Sean and Gary Anderson.
Police were told that Gary Anderson had teeth missing and Sean Anderson appeared to be “busted up”.
Dunlop said he went out the door and saw Mr Kelly run up the street and, then, back down while being chased by the Andersons.
He told police he saw the deceased fall and the Andersons caught up with him.
The court heard Dunlop told police he saw Sean Anderson stab Mr Kelly and he started shouting, “stop, stop”.
He told police he pulled Sean Anderson away and pushed him up the street, and, then, he saw Gary Anderson stab Mr Kelly.
Dunlop told police he, then, pulled Gary Anderson away and they all went back to the house at Grafton Street.
Police were told by Dunlop that, when they got back to the house, Gary Anderson started throwing up in the sink and Sean Anderson was throwing up in the back yard.
Dunlop said he “freaked”, left the house and ran home.
He later told his friend: “I saw a man dying tonight”.
The trial continues.