An official in the Ministry of Interior confirmed the blast took place in the vicinity of the 5th police district of the city.
The official further added that the blast has likely targeted the vehicle of a government official but no one was hurt in the attack.
According to the official, the security forces have arrived to the area and an investigation is underway regarding the incident.
No group including the Taliban militants has so far claimed responsibility behind the incident.
This comes as at least three people were wounded in a similar attack in the vicinity of 3rd police district in Karte Char area earlier on Monday evening.
The use of improvised explosive device and magnetic bombs in the attacks in Kabul and other cities of the country are on the rise during the recent months despite there have been a considerable reduction in coordinated large scale attacks.