Blogs - Categories with Subcategories - Navigation block not shown

Hi guys, when I have a blog category with subcategories, it looks like the navigation pane on the right side is not available on my main site (after entering the category). See screenshots.

Main Blogs page showing categories:

When I click on a category, I am expecting to see subcategories:

Here's what my admin panel looks like:

I couldn't find a configuration to enable this, maybe I'm just missing it or the feature doesn't exist.

Thanks guys, I expect a lot more members to start using blogs and this is a great feature!

Mike