Heat oil in a large skillet over medium low heat, and stir in the onion. Cook onion until tender and golden brown, about 5 to 10 minutes.
Place potatoes, salt and green bell peppers into the skillet with the onion. Cover and fry for 3 to 5 minutes. Stir in ground black pepper. Place the kielbasa pieces on top of mixture, cover and let cook for 15 to 20 minutes, stirring occasionally.
Stir kielbasa into the mixture and cook an additional 10 to 15 minutes, or until potatoes are tender. Allow to sit covered for an additional 15 minutes before serving.