Police spokesman Khalid Zadran confirmed that a bomb had exploded but said three civilians were killed and four others wounded in the attack.
He added that the explosion occurred in the eastern part of the city, in the Alokhail area, and that police had detained one suspect.
The Islamic State group’s affiliate in the region has in the past carried out attacks often targeting Shiites, whom IS considers to be apostates.
Over the weekend, the Islamic State group claimed responsibility for a minibus explosion in western Kabul that killed at least five people.
The IS affiliate has been a major rival of the Taliban since the latter seized control of Afghanistan in August 2021 as U.S. and other troops withdrew. IS militants have struck in Kabul and in northern provinces.