The attack struck near the private Shinozada hospital in the capital's Macrorayan neighbourhood, the sound of the powerful blast roaring throughout the capital.
The bombing killed at least nine Afghan civilians and one foreigner and wounded 60, said Wahidullah Mayar, a Health Ministry spokesman. US Col. Brian Tribus, a NATO spokesman, said the three contractors had been killed, without elaborating.
Conflicting information is common after such attacks.
Najib Danish, a deputy Interior Ministry spokesman, said the attack destroyed more than a dozen of civilian vehicles.
The militants also have launched a series of attacks in Kabul in recent weeks following Afghan authorities announcing the death of Taliban figurehead Mullah Mohammad Omar.
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