He was then promoted to Admiral of the Fleet on 16 June 1904. During his time as First Naval Lord Kerr presided over a period of continued re-armament in the face of German naval expansion but was unceasingly harassed by Admiral Sir John Fisher until he was replaced by Fisher in October 1904.
In 1904, Kerr was promoted to Admiral of the Fleet on June 16th.  While serving as First Naval Lord, he faced pressure from Admiral Sir John Fisher to re-arm the navy in response to German naval growth. This led to his removal from the position by Fisher in October 1904.