Fry ground beef, onions, bell pepper, chili pepper in a little vegetable oil on medium heat until meat is no longer pink. Break up ground beef in small pieces as it cooks. Do not drain oil.
Mix taco seasoning with 1-1/2 cup water and pour it into the fry pan and stir to mix it in with the ground beef mixture.
Simmer long enough until the liquid is reduced to 1/3 of the starting amount then stir in ketchup.