Preheat your oven to 400°F (200°C). Lightly grease a 9x13-inch baking dish or large sheet pan.
Pat the chicken dry with paper towels and cut into thin, even strips.
This helps it cook quickly and stay juicy.
In a large bowl, combine the sliced peppers and onions. Drizzle with 1 tablespoon of the oil and toss.
In a separate bowl, add the chicken. Drizzle with the remaining 2 tablespoons oil.
Add chili powder, cumin, smoked paprika, garlic powder, onion powder, oregano, red pepper flakes (if using), salt, and black pepper. Toss until every piece is well coated.
Spread the vegetables evenly in the baking dish. Nestle the seasoned chicken strips on top in a single layer for even cooking.
Bake for 18–22 minutes, or until the chicken reaches an internal temperature of 165°F (74°C) and the peppers are tender-crisp.
Avoid overbaking, which can dry out the chicken.
Remove from the oven and immediately add the lime zest and juice. Toss gently to coat everything. The citrus brightens the flavors.
Garnish with chopped cilantro and adjust salt and pepper to taste.
Serve hot with your favorite low-carb toppings.