The sound of gunfire could also be heard in the aftermath of the explosion, which officials said hit close to Green Village, a large compound to the east of the city used by staff of international organisations.
A cloud of white smoke could be seen spiralling into the sky over the area, which has been hit repeatedly by suicide bombers.
The explosion came as a senior US diplomat was visiting Kabul to brief Afghan President Ashraf Ghani on a draft peace accord reached with the Taliban that could see thousands of US troops withdrawn from Afghanistan.
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