A powerful explosion has rocked the Afghan capital, Kabul, killing at least four people and wounding scores of others, the country's health ministry has said.

The Taliban claimed responsibility for Monday's blast near the Green Village compound, which houses several international companies and charities, in eastern Kabul.

The 93 people wounded included 24 children, Afghanistan's Public Health Ministry spokesperson Wahidullah Mayar said in a Twitter post.

The explosion took place when a bomb-laden car blew up outside the high-security compound.

"Most of the victims were civilians," said Interior Ministry spokesperson Najib Danish.

Local Afghan news website Tolo News posted footage on Twitter which appeared to show ambulances returning from the scene of the explosion.

Zabihullah Mujahid, a spokesperson for the Taliban, said the groups fighters were responsible for the attack in which he claimed dozens of foreign and Afghan security forces were killed and wounded.

"Five attackers, including the suicide bomber driving an explosives-laden vehicle, were involved in the attack," Mujahid said in a statement.

The Taliban often inflates casualty figures in attacks against Afghan government or foreign targets.

Monday's attack took place as US peace envoy for Afghanistan Zalmay Khalilzad tours the region for meetings aimed at bringing an end to the country's 17-year-long war.