The explosion is believed to have hit near Massoud square, where the US embassy is housed along with several other western diplomatic buildings.
Interior Ministry spokesman Najib Danish said the blast occured at the entrance to a Kabul Bank branch, not far from the embassy.
There are believed to be casualties following the blast which took place at roughly 10:15am local time (7:15am GMT), although police are yet to confirm.
Unconfirmed reports claimed the explosion was caused by a suicide bomber, who triggered the blast after being spotted by police in the area.
The public health ministry said one person had been killed and eight wounded.

vCard.red is a free platform for creating a mobile-friendly digital business cards. You can easily create a vCard and generate a QR code for it, allowing others to scan and save your contact details instantly.
The platform allows you to display contact information, social media links, services, and products all in one shareable link. Optional features include appointment scheduling, WhatsApp-based storefronts, media galleries, and custom design options.
More to follow…