First thing: Insulin may not be affective for a T2 diabetic without some form of oral medication. With T2, the body cannot use insulin in an effective way. Your body needs the oral meds to help your body use the isulin that is already there. Insulin works on a T1, because their bodies do NOT produce ANY insulin, but may be able to use the insulin they inject. That is the difference between the 2 types of diabetes.
Second: Do you know your important lab numbers? Do your know your levels of creatinine or BUN? Have you had a 24 hour urine study done? If you are in danger of losing kidney function, those are the essetial lab tests that should become part of your health vocabulary. If you don't know/ or if these tests have not been done, then there is most likely not as much of a problem as you fear. Try to relax about it, but keep having regular checks with the doctors, OK?
Third: The low protein diet is meant to keep your creatinine level down, and reduce the risk of needing dialysis. It is a LOW protein diet...not NO protein. As with diabetes, all things, protein is probably alright in moderation. Eating protein in moderation is better for your overall health, anyway. It is better for your heart, cholesterol, and is generally a way to lower calorie intake, as well. Have you been given a total number of grams which you are permitted?
I'm not sure how your doctor arrived at the facts he gave you (one kidney is at 30%...I can't imagine how they know which kidney is doing what...but I'm not a doctor) Good luck with the diet, and keep us posted. Hope some of this helped you! HUGS! sheryl