The incident took place before noon time close to Zorabad area of the city with the security sources saying at least three people were killed.
The sources further added that the blast has also at least two people wounded.
Kabul police spokesman Hashmat Stanikzai confirmed the incident and said at least one person was killed and three others who had sustained injuries have been detained by the police on suspicion of preparing explosives for the attacks.
This comes as at least five people were wounded in a magnetic bomb explosion in the 5th police district of the city on Sunday.
The security officials said Sunday that a magnetic bomb planted in a police vehicle was detonated in the Company area of the city, leaving at least five people wounded.