The explosion happened at the Dubai City venue in the west of the city, which is home to many members of the Shiite Hazara community.
At least 63 people have died and 182 others have been injured after a bomb went off at a wedding party in Kabul Saturday night, the interior ministry confirmed.
It happened at the Dubai City venue, which is in an area with a big Shia Hazara community.
More than 1,000 people were believed to be inside the venue when the blast went off.
The Taliban has denied any involvement - and it is not yet known if any other group were behind it.
Afghanistan’s president, Ashraf Ghani, said on Twitter that the Taliban cannot absolve themselves of blame.
He also tweeted that he had ordered the relevant authorities to urgently assist in managing the wounded - and in response to the targeted attack said he has called an "extraordinary security meeting" to review and prevent such security lapses.
The explosion comes a few days after the end of the Muslim holiday of Eid al-Adha, with Kabul residents visiting family and friends.
It also comes as the Taliban and the United States are trying to negotiate an agreement on the withdrawal of U.S. forces in exchange for a Taliban commitment on security and peace talks with Afghanistan’s U.S.-backed government.