Heat the olive oil in a large pot over medium-high heat.
Season the lamb pieces with salt and pepper, then add to the pot. Cook until browned on all sides.
Add the chopped onion and minced garlic to the pot with the lamb. Cook until the onions are translucent.
Stir in the carrots and potatoes, then pour in the beef broth. Add the dried thyme and bay leaves.
Bring the stew to a boil, then reduce the heat to low and cover the pot. Simmer for about 2 hours, or until the lamb is tender and the vegetables are cooked.
Remove the bay leaves before serving. Adjust seasoning with salt and pepper to taste.