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