Check also this same hack, displaying also subcategories.
Hi there,
If you want to display a menu containing links for every post category page on your WordPress site, probably this hack will be useful.
Just copy and paste wherever you want on your theme files.
You can also play with its CSS styles, so using the ids divcateg, ulcateg and the dynamic generated licateg_[category slug], you may change the category menu appearance.
<?
$args = array(
'type' => 'posts',
'orderby' => 'name',
'order' => 'ASC',
'hide_empty' => 1,
'hierarchical' => 1,
'taxonomy' => 'category',
'pad_counts' => false );
$categories = get_categories($args);
if(count($categories)>0):
echo '<div id="divcateg"><ul id="ulcateg">';
foreach ($categories as $category) {
echo '<li id="licateg_'.$category->slug.'"><a href="'.get_bloginfo('siteurl')."/".$category->slug.'">'.$category->cat_name.'</a></li>';
}
echo '</ul></div>';
endif;
?>



