Diabetes is one of the most significant factors in causing a nonalcoholic fatty liver, although the exact cause is complicated, according to MedicineNet. Conditions in the body that develop due to diabetes make the liver resistant to insulin. When the liver changes its normal functioning, it accumulates excess fat.
Diabetes patients have an increased risk of developing fatty liver disease, according to Mayo Clinic. Almost 50 percent of Type 1 diabetes patients and 50 percent or more of Type 2 diabetes patients have fatty livers. Poorly managed cases of Type 2 diabetes can make liver conditions worse. Patients with fatty livers frequently do not experience any symptoms but have an increased chance that their livers may become inflamed, scarred or develop cancer.