The blast occurred in the Serahi Alauddin neighborhood of the city, private Afghan channel TOLO News reported citing an eyewitness.
Emergency, a non-governmental organization that provides free medical and surgical care to Afghan civilians, said in a tweet that 20 injured were treated at its hospital following the blast.
A series of deadly explosions, mainly targeting the Shia Hazara community, have rocked several Afghan towns over the past two weeks.
Last week, 33 people were killed and dozens injured in an explosion at a mosque in Afghanistan’s Kunduz province during Friday prayers, according to Taliban spokesman Zabiullah Mujahid.
Most of the recent attacks have been claimed by the Islamic State-affiliated group and its Taliban rival ISIS-Khorsan (ISIS-K). Friday’s explosion has yet to be claimed by any group.