Khalid Sadran, a spokesman for the Kabul police chief, told CNN that the blast caused casualties, but did not provide further details.
The incident took place in the city’s Police District 17 and security forces have reached the spot and are investigating.
At least three people have died, the health care organization Emergency said.
“Following today’s explosion, we admitted 27 patients to our surgical center for war victims in Kabul, including five minors, one of whom is a 7-year-old boy,” Stefano Sosa, country director of emergencies in Afghanistan, told CNN.
“Two patients died, one died in the emergency room,” he said.
“In August alone, we dealt with six disasters in our hospital, with a total of 80 patients. Throughout the year, we continued to receive victims of gunshot wounds, shrapnel wounds, stab wounds, and mine and IED blasts. On a daily basis, the effects of the protracted conflict undermined its future. The country is experiencing,” he added.
Taliban spokesman Zabihullah Mujahid confirmed the number of dead and wounded civilians, but did not say how many. He tweeted that the Taliban government “strongly condemns” the blast and vowed that “those responsible for such crimes will be caught and punished for their heinous acts”.
Another Taliban deputy spokesman, Bilal Karimi, condemned the blast in a tweet on Wednesday evening.
“Those who kill civilians and commit similar crimes will soon be caught and punished for their actions, God willing,” Karimi wrote.
CNN’s Brent Swailes and Johnny Hallam contributed reporting.