Diabetic nephropathy is a type of kidney damage that can occur in people with diabetes. It is caused by high blood sugar levels, which can damage the small blood vessels in the kidneys and affect their ability to filter waste from the body. Both type 1 and 2 diabetics patients are at risk of this condition. But, the incidence of diabetic nephropathy is higher in people, with up to 40% of people with type 1 diabetes developing diabetic nephropathy.