The standard wp_list_categories() function echoes a list of all your categories. Let’s see how we can quickly force the display of categories on two columns.

Simply paste the following piece of code where you’d like your categories to be displayed:

<?php
$cats = explode("<br />",wp_list_categories('title_li=&echo=0&depth=1&style=none'));
$cat_n = count($cats) - 1;
for ($i=0;$i<$cat_n;$i++):
if ($i<$cat_n/2):
$cat_left = $cat_left.'<li>'.$cats[$i].'</li>';
elseif ($i>=$cat_n/2):
$cat_right = $cat_right.'<li>'.$cats[$i].'</li>';
endif;
endfor;
?>
<ul class="left">
<?php echo $cat_left;?>
</ul>
<ul class="right">
<?php echo $cat_right;?>
</ul>

Then, just save the file, and enjoy!

Credits go to Blog Oh Blog for this awesome recipe!