Police chief Abdul Rahman Rahimi said civilians and members of the Afghan security forces were among the dead and wounded.
The Taliban claimed responsibility for the attack. It was the first in the Afghan capital since the militant group declared the start of their spring offensive a week ago, according to Reuters.
The Taliban-led insurgency has gained strength since the withdrawal of international forces from combat at the end of 2014 and the Taliban are stronger than at any point since they were driven from power by US-backed forces in 2001.
The US embassy said it was not affected by the blast. The NATO-led force also said it was unaffected.