Security officials confirmed the blast took place as a result of a magnetic bomb attached to a vehicle.
Fraidoon Abedi, the head of the Criminal Investigation Department in Kabul Security commandment, said the magnetic bomb was planted in an army vehicle.
He said one person in the vehicle sustained minor injuries and no casualties were incurred to the other people.
Pictures emerging from the site of the incident on social media websites shows a Toyota Land Cruiser vehicle damaged as a result of the explosion in Kolola Poshta area of the city.
There has been a considerable rise in the use of magnetic bombs in Kabul city during the recent months as at least 3 people were wounded in a similar incident in Kabul city 3 days ago.
Earlier one person was killed and three others were wounded in a similar attack in Bagrami district of Kabul nearly a week ago.
Two people were killed and two others were wounded after a magnetic bomb planted in a vehicle went off in Kote Sangi area of the city few weeks earlier.
One of the victims was the head of the Human Resources department of the Afghan parliament who was travelling in the vehicle.