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Heat the oil in a large, heavy-based pan with a lid. Season the chicken and brown all over. Remove the chicken to a plate and cook the onion and bacon for 5 mins until softened and lightly coloured.
Return the chicken to the pan, and add the remaining ingredients, except the crème fraîche and pesto, along with plenty of freshly ground black pepper. Bring to the boil, then cover and gently simmer for 30-40 mins until the potatoes are tender and chicken cooked through.
Stir in the crème fraîche and pesto. Serve with some crusty bread for mopping up the sauce, if you like.