Cut chicken into 1 inch pieces; arrange in a shallow container. Combine teriyaki sauce and next 4 ingredients, stirring well. Pour over chicken, reserving 1/3 of the marinade to use later for basting. Cover and marinate in refrigerator 3 hours.
Soak wooden skewers in water for at least 30 minutes. Remove chicken from marinade, discarding used marinade. Thread chicken alternately with peppers and onions onto skewers. Grill kabobs over medium-hot coals 3-5 minutes on each side or until chicken is done, basting frequently with reserved marinade. Garnish with basil sprigs, if desired. Yield: 6 servings.