Al Jazeera's Jennifer Glasse, reporting from Kabul, said there were no NATO casualties in the bombing, as the military personnel were travelling in heavily armoured vehicles. Thirty-five civilians were injured, according to the chief of police.
"Even though the target was military, as so often is the case here, civilians bore the brunt," our correspondent said, referring to UN figures showing that civilian deaths and injuries in the first six months of 2014 were 24 percent higher than over the same period last year.
NATO's International Security Assistance Force (ISAF) said in a statement: "We can confirm that an ISAF convoy was attacked by enemy forces in Kabul today.
"There are no reports of ISAF fatalities at this time. We sincerely regret the loss of the lives and injury to innocent Afghan civilians caused by the insurgents in this tragic incident."
The Taliban has pledged to step up attacks against Afghan security forces in a bid to undermine the Western-backed government as foreign combat troops prepare to withdraw by the end of the year.
US-led foreign troop numbers in Afghanistan have declined from a peak of 150,000 in 2012 to just 44,300 now.