The 25-year-old Jones, who set career highs with the Bills last season with 41 receptions for 443 yards and four touchdowns, was placed on the non-football injury list in Week 16 with what was then an undisclosed medical issue.
He was subsequently released as a free agent, signed by the New England Patriots in March but released again last month.
Jones made the announcement via Twitter.
"As some of you may know, I have been suffering from a kidney disease throughout my entire life," he wrote. "As a result of recent advances in my disease, I am no longer able to pursue my career in the National Football League."
Calling playing in the NFL "a lifelong dream of mine," he said leaving the game is the "absolute best decision for my family and for my health."
Originally signed by the Bills in 2010 as an undrafted free agent out of Youngstown State, Jones made 82 grabs for 887 yards and six touchdowns in a 35-game career.