The incident took place around 7 am local time in the vicinity of the 8th police district of the city, targeting a civilian vehicle.
The Ministry of Interior (MoI) spokesman Najib Danish said a magnetic bomb planted in a Toyota Fielder type vehicle was detonated in Bani Esar area of the city.
He said the driver of the vehicle was killed in the explosion but no one else was killed or wounded.
No individual or group has so far claimed responsibility behind the incident.
This comes as the anti-government armed militant groups have stepped up their efforts to carry out attacks in the key provinces and cities of the country, including capital Kabul.
The Afghan intelligence, national directorate of security, said late on Monday that two suicide bombers were arrested before they manage to carry out a car bomb attack in the city.
Meanwhile, the security forces confiscated a mini-truck packed with explosives from the vicinity of the 5th police district of the city a day earlier.
The Afghan intelligence says Taliban’s Peshawar Council have decided to carry out a series of attacks in Kabul city however the main motive behind the attack plans are not clear as efforts are underway to revive peace talks.