The reality star and her fiancé George Kay were panic-stricken when their newborn daughter Dylan-Jorge turned blue and her heart stopped just moments after the delivery, and couldn't believe how quickly the happy moment had turned into a nightmare.
The 33-year-old blonde said: "We're over the moon George and I are both crying at how absolutely beautiful she is. Then I had a weird sensation that something wasn't right. She wasn't making a noise... but she was moving.
"Ten minutes after giving birth she was on my chest and she collapsed. She stopped breathing and her heart stopped."
George added: "Next thing the midwives are taking the baby off us and started reviving her. A crash team came running in and they took her to the other side of the room. Kerry's shaking and screaming, 'Where's my baby?' She was covered in fake tan at the time and the colour just drained from her.
"I leant across Kerry so she couldn't see what was going on. They were trying to revive Dylan, who was going blue behind me, and Kerry's just full of tears on the bed."
Dylan was miraculously revived, but things soon went from bad to worse as Kerry almost died when the placenta ruptured inside of her.
She recounted: "I was losing loads and loads of blood because the placenta didn't come out and it burst inside me. I was in shock. They manually took out the placenta.
"I was just screaming and lying on the operating table with all these lights above me. Then I start throwing up everywhere and George is crying. You bargain with God, 'Please let her survive and take me'. I thought, 'This is it, we're both going to die.' "
George explained: "In my lifetime I've seen some horrific things but the thought of losing your two most loved people at the same time... I was a mess."
Kerry - who already has daughters Molly, 12, and Lilly-Sue, 11, with her first husband Brian McFadden and Heidi, seven, and son Max, five, with second husband Mark Croft - has made a full recovery and is looking forward to spending quality time with the new addition to their family.