Police said the blast, which was believed to have been triggered by a suicide bomber, was in an area close to the German embassy.
The explosion also shattered windows and blew doors off their hinges in houses hundreds of metres away.
Huge clouds of black smoke were seen spiralling over the area near the presidential palace and foreign embassies.
Kabul resident Fatima Faizi told Al Jazeera.”The explosion was so loud that it shattered all my windows.
“(I have not heard) something this big before.” This is so sad.