Introduction: Anemia is defined as a reduction in the hemoglobin concentration of blood, which consequently reduces the oxygen-carrying capacity of red blood cells such that they are unable to meet the body’s physiological needs. Several reports have indicated that anemia mostly occurs in diabetic patients with renal insufficiency while limited studies have reported the incidence of anemia in people with diabetes prior to evidence of renal impairment. Other studies have also identified anemia as a risk factor for the need for renal replacement therapy in diabetes. Understanding the pathogenesis of anemia associated with diabetes may lead to the development of interventions to optimize outcomes in these patients. The aim of this study was therefore to determine the prevalence of anemia among patients with type 2 diabetes mellitus (T2DM). Methods: A total of 400 (250 with type 2 diabetes and 150 non diabetic subjects) participants were recruited for our study. Participants’ blood samples were analyzed for fasting blood sugar, complete blood count (CBC) and renal function tests among others. The prevalence of anemia was then determined statistically. Results: A high incidence of anemia was observed in the cases. Of the patients with diabetes, 84.8 % had a hemoglobin concentration that was significantly less (males 12.3±1.71 and females 11.38±1.64) than the non diabetic subjects (males 13.8±1.40 and females 12.0 ±1.41). Renal insufficiency determined by serum creatinine level of >1.50 mg/dL, estimated glomerular filtration rate (eGFR) <60 ml/minute/1.73m2. A significantly increased fasting blood sugar, glycated hemoglobin (HbA1c), urea, creatinine were observed in the cases (9.44±3.57, 8.29±1.61, 36.6±29.6, 1.67±1.30 respectively) as compared to the Non diabetic subjects (4.77±0.56, 5.2±0.48, 23.3±17.7, 1.18±0.44 respectively). Finally, a significant association between hemoglobin concentration and fasting blood sugar was also observed in the T2DM. Conclusions: The findings suggest that a high incidence of anemia is likely to occur in patients with poorly controlled diabetes and in patients with diabetes and renal insufficiency.