The wounded have been taken to hospitals around the city.
AFP quoted a security source as saying 20 people had been killed in the attack, which occurred about 8:30 p.m. local time.
According to reports, the Islamic State of Iraq and Syria (ISIS) loyalists have claimed responsibility behind the attack.
Nine more dead as violent Iran protests continue over price of food
At least five people were killed Monday in protests in Isfahan province, according to Iran's state-run Asriran news agency. The intelligence ministry said "rioters and agitators of public-unrest" had been arrested, ISNA news agency reported.
In a statement Thursday, President Ashraf Ghani called the attack "inhumane" and against the tenets of Islam.
A suicide attacker on foot detonated his explosives, a spokesman for the city's police chief said.
The UN Security Council also condemned "the heinous and cowardly" terrorist attack and underlined the need to bring "perpetrators, organisers, financiers and sponsors of these reprehensible acts of terrorism to justice". No group has yet claimed that attack.
USA suspending more than $255m in security aid to Pakistan
They say Pakistan is not refusing to fight the Haqqani network, but that the two capitals disagree about the facts on the ground. Secretary of State Rex Tillerson and Defense Secretary Jim Mattis traveled to Pakistan to meet with government officials.
Earlier, on 31 December, 15 people were killed and more than 10 others wounded in a suspected suicide attack targeting a funeral in eastern Afghanistan.
Despite increased security measures, Kabul has become one of the deadliest places for civilians in war-torn Afghanistan in recent months due to increased Taliban attacks and IS attempts to expand its influence in the country.
USA forces led an invasion to drive Taliban extremists from power after Al-Qaeda militants whose leaders were sheltering in Afghanistan carried out the September 11, 2001, attacks on the United States.
Temporary outage at Customs leads to longer lines
CBP has not given an explanation of what caused the disruption in the system but did say it was not "malicious in nature". It added that all airports came back online after the outage lasted from 7:30 pm to about 9:30 pm ET.
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