Heat large pot on medium. Slice kielbasa into bite-sized pieces and place in pot. Fry, stirring occasionally, for approximately 15-20 minutes or until browned. Remove from pot and set aside.
Meanwhile, peel and dice potatoes into 1/2 inch chunks. Heat oil in pot, then add potatoes. Brown, turning occasionally, for approximately 15 minutes or until golden-brown.
Stir in kielbasa, tomato sauce, tomato paste, water and salt & pepper to taste. Bring to a boil, and reduce heat to medium low. Cover and cook, stirring occasionally for 20-30 minutes or until potatoes are cooked through. Remove from heat and let sit for 5-10 minutes. Serve over white rice.