Rt reports that police have yet to confirm the number of casualties, but China Global Television Network are reporting that seven people have died and a further 59 have been injured in the blast.
Two people died on the spot and five more later.
The blast occurred as children were being picked up from school in the city of Xuzhou in Jiangsu province on Thursday, police said.
One witness, a local businessman, reported that around 5:00 pm (0900 GMT) he heard a "bang".
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Blasts and other accidents are common in China, because of patchy enforcement of safety rules, although the government has pledged to improve checks to stamp out such incidents. Clothing, shoes and other items were strewn on the ground beside pools of blood.
The newspaper People's Daily, which posted graphic photos and videos of the blast's aftermath in Jiangsu province, reports that an investigation is now underway. There is no word from authorities as to what caused the explosion.
It is the latest tragedy to strike a kindergarten in China in recent weeks.
Police said, they are investigating the incident.
Officials later said the fire was intentionally set by the driver, who was angry at losing overtime wages.