The Ministry of Interior officials confirmed that the incident took place in Deh Afghan area of the city, targeting a civilian vehicle.
A spokesman for the Ministry of Interior Najib Danish confirmed that a magnetic bomb planted in a Toyota Corolla type vehicle went off in Deh Afghan area, leaving three people wounded.
There are bi reports regarding the health condition of those wounded in the explosion.
No group including the Taliban insurgents has so far claimed responsibility behind the incident.
This comes as the anti-government armed militant groups have been attempting to carry out large attacks across the country, including the key cities and provinces as they attempt to expand their insurgency.
The militant groups carried out some large attacks in Kabul city including a coordinated attack on Iraqi embassy in Kabul nearly two weeks along with a suicide attacks on foreign forces convoy that left several people dead or wounded, including ordinary civilians.
The Afghan security forces earlier foiled a series of attacks planned by the Taliban insurgents in Kabul city by arresting a group of at least three insurgents in connection to the attacks plot.
The Afghan Intelligence, National Directorate of Security (NDS) officials said earlier today that the suspects were arrested shortly after they were deployed by the group to Kabul city in a bid to carry out the attacks.