In a medium size bowl, using a potato masher, mash up the tofu. Press and drain off any excess liquid.
In a small bowl whisk together soy sauce, hot sauce, chili powder, cumin, and cayenne pepper. Pour over tofu, stir to combine, and set aside.
In a large dutch oven, heat the olive oil over medium heat for about a minute. Add the green pepper, onion, and garlic and lightly season with salt and pepper. Saute, stirring occasionally, until softened, about 5 to 7 minutes.
Add in the tofu, crushed tomatoes, kidney beans, and water. Bring to a boil. Reduce to a low simmer (you should be able to see very small bubbles at the surface) and cook for 30 minutes uncovered.
This chili recipe definitely has some kick to it. If you are sensitive to heat, skip the cayenne pepper (or only add 1/4 teaspoon), and taste it at the end, adding more as desired.