Authorities said 22 people were wounded in the powerful blast, which mangled a dozen cars and destroyed shops nearby. Ambulances raced away with the wounded.
The explosion came just hours after President Hamid Karzai announced that US and Afghan negotiators had finished a draft deal to be presented to the Loya Jirga, whom Kabul says must approve the document before Afghanistan signs it.
No group immediately claimed the attack, though blame is likely to fall on the Taliban, who have adamantly opposed the presence of any foreign soldiers in Afghanistan.
Karzai has called 3,000 elders, clerics, parliamentarians and other influential figures to debate the Bilateral Security Agreement, which would allow US troops to remain in Afghanistan after the final withdrawal of international combat troops at the end of 2014.
Without approval of the Loya Jirga, Afghanistan likely will refuse to sign the agreement, Karzai said. If the Loya Jirga does approve it, the agreement still requires final approval from parliament.
Negotiations have been protracted and often acrimonious. In the end it took a surprise visit to Afghanistan in October by US Secretary of State John Kerry to produce the outlines of a deal.
The sweeping document incorporates the usual Status of Forces Protection Agreement, which the US signs with every country where its troops are stationed, along with a wide range of other clauses. It covers everything from customs duties on goods the US imports for its troops and development projects to the question of whether a US service member could be prosecuted for criminal offences in an Afghan court.
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