AVA- Najib Danish, spokesman for the Ministry of Interior, told media the suicide attack targeted a private community hall. He said a meeting to mark the birthday of Prophet Muhammad (PBUH) was underway when the blast ripped through the crowd.
Local Azadi Radio reported at least 43 people were killed and more than 50 injured.
Emotional scenes were witnessed at the site as ambulances rushed to transfer the dead and wounded to hospitals.
Afghan President Mohammad Ashraf Ghani condemned the attack calling it a clear demonstration of enmity with Islamic principles and lifestyle of Prophet Muhammad (PBUH).
He directed authorities to lower the national flag in government buildings and diplomatic missions on Wednesday to mourn the lives lost in this terrorist attack.
The UN Assistance Mission in Afghanistan (UNAMA) in a statement expressed outrage at the bombing at a time when communities across Afghanistan are marking a day of special religious significance.
There has been no immediate claim of responsibility for the attack.