The explosion took place at around 10:30 am local time near Pul-e-Charkhi road close to Yakatoot locality, Kabul’s police spokesman Hashmat Stanekazai told the agency.
Several casualties have been reported, but the exact number is yet unknown, the report says.
According to TOLO news channel, Afghanistan’s deputy interior minister has confirmed that the explosion appeared to be a suicide bomb attack. Police have cordoned off the blast scene.
The target of the attack is yet unknown. An investigation is ongoing.
Over the past week, the Taliban militants have staged a series of massive terrorist attacks in Afghanistan.
On Sunday, 57 people were killed and over 60 others were injured when a suicide blast ripped through crowds at a volleyball match in the south-eastern province of Paktika, in the country's deadliest terrorist attack this year.
In a separate incident, two NATO servicemen were killed in an attack in Kabul on Monday.