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The Taliban has claimed responsibility for a powerful explosion and a follow up attack in Kabul's downtown area near the ministry of defence that has killed at least 10 people, Al Jazeera reported.

The bomb went off during morning rush hour in the capital when the streets were filled with people, injuring 65, including nine children.

Mohammad Karim, a police official in the area of the attack, said a car bomb exploded outside a defence ministry building.

At least three fighters then ran into a nearby high-rise located near the ministry's engineering and logistics department, a government security official said.

"Gunmen have entered a building and they are clashing with the Afghan forces after the powerful blast," said interior ministry spokesman Nasrat Rahimi.

Taliban spokesman Zabuhullah Mujahid said in a statementthat the group's fighters attacked "the logistics and engineering centres" of the ministry of defence.

The statement said the large explosion outside the defence ministry building caused "heavy casualties to a number of civilian people", but said the target of the attack was not civilian, but military.

The United Nations, NGOs and the Afghan government have criticised the Taliban for causing civilian casualties.

Afghans decried the attack on social media, many sharing photos of children who were injured on their way to school.