Heat oil in a large pot over medium-high heat.
Season chicken with salt and black pepper, then brown chicken pieces in the pot until golden brown on all sides.
Remove chicken from pot and set aside.
In the same pot, add onions and garlic, and sauté until onions are translucent.
Add chopped tomatoes, habanero peppers, thyme, oregano, smoked paprika, cumin, bay leaves, and season with salt and black pepper.
Add 2 cups of water and bring to a simmer.
Return chicken to the pot and spoon some of the tomato mixture over the chicken.
Cover and simmer for about an hour, or until the chicken is cooked through and tender.
Serve hot over rice, beans, or with your favorite side dishes.