Yes, diabetes can affect your kidneys health hence you are recommended to keep checking them with KFT tests every six months.
Over time, high blood sugar from diabetes can damage blood vessels in the kidneys as well as nephrons so they do not work as well as they should. Many people with diabetes also develop high blood pressure, which can damage kidneys too
Diabetes melitus can cause the vessels to become narrow and clogged. Without enough blood, the kidneys become damaged and albumin (a type of protein) passes through these filters and ends up in the urine where it should not be.