The bomb was detonated as people gathered for a ceremony to commemorate the death of Shia martyr Imam Hussein, the grandson of the prophet Muhammad.
The Taliban was quick to deny involvement.
Shortly afterwards, Sunni Muslim group ISIL claimed responsibility for the bombing, which came amid a series of sectarian attacks carried out by the militants.
Afghan government Chief Executive Abdullah Abdullah labelled the bombing “a war crime and an act against Islam and humanity.”
A number of children are said to be among the dead and at least ten more are receiving medical care, according to reports from one of two hospitals treating the majority of the injured.
The head of Isteqlal Hospital, Mohammad Sabir Nasib, said they had “received 38 wounded people and provided them with better treatment. Eight of the wounded are in a critical condition.” (Euronews)