Heat olive oil in a dutch oven or large pot over medium-high heat. Season chicken with adobo, garlic powder, dried oregano, salt, and pepper.
Place chicken in pan and brown pieces on both sides for 4-5 minutes. If there is too many pieces to fit all in the pan at once, make in batches. Over crowding the pan will stem the chicken and not get it browned. Remove chicken and set aside in a large bowl.
Add onions, peppers, garlic, and sofrito and cook for 2-3 minutes. Add potatoes, olives, tomato sauce, sazon, chicken bouillon, water and bay leaf to the pot and bring to boil.
Place chicken and any juices from the bowl back into the pot. Reduce heat to low heat and cook for 40 minutes until chicken is cooked through and potatoes are tender.