0611 GMT January 29, 2022
The incident happened in Dasht-e Barchi, a Kabul suburb dominated by members of the mostly Shia Hazara community.
Since the Taliban returned to power on August 15, dozens of bombs have been set off in eastern Nangarhar province – a hotbed of Daesh activity – but the capital Kabul has largely escaped such violence.
A witness told AFP that the explosion occurred near a Taliban checkpoint, and that gunfire could be heard briefly immediately afterwards.
Taliban spokesman Zabihulla Mujahid tweeted that one person had been killed.
Images shared on social media showed flames and a thick cloud of black smoke spiralling into the sky. At least two people suffered serious burn injuries, according to a director of a nearby hospital that specializes in burn cases.
The blast comes a day after at least three people were killed and 15 wounded by a bomb at a mosque Nangarhar.
That bombing – for which no group has yet claimed responsibility – underscores the many challenges facing the new Taliban rule in Afghanistan, with the UN warning the country is also on the brink of the world's worst humanitarian crisis.
In a statement, the Nangarhar governor's office said officials had arrested two "perpetrators", but provided no other details.
"Further investigation into the incident is ongoing and more actions will be taken," it said.
While Kabul has largely been free of the Daesh terror group’s activity since the Taliban takeover, in one recent attack Daesh terrorists raided the city's National Military Hospital, killing at least 19 people and injuring more than 50.