At least 22 people were injured as a result of the explosion, hospital officials and witnesses said.
The blast occurred in a western district of the city where members of the minority Shia Muslim community regularly meet.
Video footage posted online showed ambulances rushing to the scene, which is also near bus stations.
A spokesman for the Taliban interior ministry said an investigation team was at the blast site to help the wounded and assess casualties.
No militant group immediately claimed responsibility for the attack, which came ahead of Ashura, a commemoration of the martyrdom of Imam Hussein (AS), a grandson of Prophet Muhammad (PBUH).
On Friday, at least eight people were killed and 18 injured in a blast in Kabul carried out by the Daesh (ISIL or ISIS) terrorist group.
Daesh does not control any territory in Afghanistan but does have deadly sleeper cells that have been targeting religious minorities in the country as well as Taliban patrols.
Taliban authorities, who took over Afghanistan in August last year after a two-decade insurgency, have said they would provide more protection for Shia mosques and other facilities.
Sayed Kazum Hojat, a Shia religious scholar in Kabul, said the Taliban government had ramped up security ahead of Ashura but should improve vigilance for any threats.
No up-to-date census data exists, but estimates put the size of Afghanistan's Shia community at between 10-20% of the 39 million population, including Persian-speaking Tajiks and Pashtuns as well as Hazaras.