The retail giant has sold 67,000 units of coloured children's sand across the four products. That number doesn't include suspect products sold through different retailers.
The sand has been sold at Kmart for several years, with the pink magic sand sales dating back to 2015, according to the Product Safety website.
In a statement, Kmart apologised for the inconvenience caused by the recalled products. It said whenever there is any potential risk associated with a product, they act "swiftly and proactively".
Kmart has withdrawn all sand-based toys from sale as a precaution.
It said the risk that any asbestos found is likely to be airborne or fine enough for inhalation is low.
The sand is part of a massive recall that's expanded even further on Thursday.
The latest contaminated item added to the list is 380g pots of craft sand in 15 different colours.
Samples of the product, which are sold in dozens of cut price retailers and dollar stores, have tested positive for asbestos.
MBIE and other agencies are proactively testing samples from other similar products that are available in New Zealand.
Testing of other play sands in New Zealand is ongoing, MBIE said.
"MBIE and other agencies are proactively testing samples from other similar products identified available in the New Zealand market. We are expecting to receive the first further results later this week and will update our partners and New Zealanders as they are received," an MBIE spokesperson said.
MBIE's Product Safety Spokesperson Ian Caplin said there are now about 20 individual pots of sand being recalled.
"We are still not in a position, as a cross-government work, to determine the full nature and extend of the risks here," Caplin said.
"But we have at the first available opportunity been moving to inform the public, working with our partners and to inform New Zealanders of what is going on."
He said they are working around the clock to find the extent of this problem.
"We are extremely mindful, and we continue to be mindful that children are the primary audience here and that's why there's no holds barred."
Some councils have set up drop-offs sites for the recalled products.
