When a diabetic patient has raised blood
glucose (sugar) levels, it causes certain chemicals in the kidneys to also
rise. Consequently, this causes the glomeruli (filtering mechanism) in your
kidney(s), to leak. Albumin, a necessary requirement for your body to stay
healthy, leaks into the urine. The high blood sugar levels can also cause the
protein present in the glomeruli to bond together. The linking of the proteins
triggers a process known as ‘scarring’, which is also called
glomerulosclerosis.

The first indication that you have
developed diabetic kidney disease is when the albumin that has leaked into your
urine is between 30 to 300mg / day. If left untreated, the microalbuminuria
could develop into proteinuria. Proteinuria is the stage, where the albumin
leak into the urine is beyond 300mg and is irreversible. It is also an
indication the kidney has reached the end-stage and that it is failing.
Swelling in parts of the body like your
hands, feet, ankles or face and the large amount of protein leak in your urine
are the first symptoms to look for.
Listen to video talk by Dr. R Balasubramaniyam MBBS, DNB (Gen.Med), DNB (Neph) about the same topic here: https://www.youtube.com/watch?v=tyxY6iXGsvg