The Ministry of Interior (MoI) acting spokesman Najib Danish confirmed the incident has taken place in the vicinity of the 5th police district of the city.
He said a magnetic bomb planted in a Ford vehicle went off in Koti Sangi area but one was killed or injured as a result of the explosion.
No group or individual has so far claimed responsibility behind the incident and the main target has not been ascertained yet.
Danish said an investigation is underway regarding the explosion and further details will be released as appropriate.
No individual or group has so far claimed responsibility behind the incident.
This comes as the Taliban-led insurgency has been rampant since the group announced its spring offensive in April and since then the group and other insurgents have been attempting to carry out attacks in key cities of the country, including Kabul city.
A large explosion took place near the embassy of Germany late in May after a tanker packed with explosive was detonated while three back to back suicide attacks targeted a funeral ceremony in the city earlier this month, leaving more than 150 dead and hundreds more wounded.
The Afghan intelligence blamed the Haqqani terrorist network for using the sanctuaries and facilities in Pakistan for plotting and carrying out the attacks in Kabul city.