The blast occurred not far from the Ali Abad hospital and the area is currently cordoned off by the police, according to other local news outlets.
No group has claimed resposibility for the blast so far, while the initial death toll stood at 3 people killed and is expected to further rise.
The blast comes just days after a suicide bomber detonated the bomb close to a compound housing foreign contractors in Kabul, killing two people and injuring three others. The Taliban claimed the responsibility for the explosion.
Afghanistan has long been suffering political, social and security-related instability because of the simmering insurgency, including that of the Taliban, Daesh terrorist group and Daesh-affiliated groups.
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