diff --git a/lib/navigationlib.php b/lib/navigationlib.php
index 7e00815a9ad..a4e392e7475 100644
--- a/lib/navigationlib.php
+++ b/lib/navigationlib.php
@@ -3016,6 +3016,7 @@ class navbar extends navigation_node {
      * @return array
      */
     public function get_items() {
+        global $CFG;
         $items = array();
         // Make sure that navigation is initialised
         if (!$this->has_items()) {
@@ -3052,11 +3053,8 @@ class navbar extends navigation_node {
                     if (!$navigationactivenode->mainnavonly) {
                         $items[] = $navigationactivenode;
                     }
-                    if ($navigationactivenode->type === self::TYPE_COURSE && $navigationactivenode->parent->key === 'currentcourse') {
-                        $categories = $this->get_course_categories();
-                        foreach ($categories as $category) {
-                            $items[] = $category;
-                        }
+                    if (!empty($CFG->navshowcategories) && $navigationactivenode->type === self::TYPE_COURSE && $navigationactivenode->parent->key === 'currentcourse') {
+                        $items = array_merge($items, $this->get_course_categories());
                     }
                     $navigationactivenode = $navigationactivenode->parent;
                 }
@@ -3066,11 +3064,8 @@ class navbar extends navigation_node {
                     if (!$navigationactivenode->mainnavonly) {
                         $items[] = $navigationactivenode;
                     }
-                    if ($navigationactivenode->type === self::TYPE_COURSE && $navigationactivenode->parent->key === 'currentcourse') {
-                        $categories = $this->get_course_categories();
-                        foreach ($categories as $category) {
-                            $items[] = $category;
-                        }
+                    if (!empty($CFG->navshowcategories) && $navigationactivenode->type === self::TYPE_COURSE && $navigationactivenode->parent->key === 'currentcourse') {
+                        $items = array_merge($items, $this->get_course_categories());
                     }
                     $navigationactivenode = $navigationactivenode->parent;
                 }
@@ -3109,13 +3104,10 @@ class navbar extends navigation_node {
         $categories = array();
         $id = $this->page->course->category;
         while ($id) {
-            $category = coursecat::get($id);
-            $categories[] = new navigation_node(array(
-                'text'=>$category->name,
-                'shorttext'=>$category->name,
-                'key'=>$category->idnumber,
-                'action'=>new moodle_url('/course/category.php', array('id'=>$id))
-            ));
+            $category = get_course_category($id);
+            $url = new moodle_url('/course/category.php', array('id' => $id));
+            $name = format_string($category->name, true, context_coursecat::instance($category->id));
+            $categories[] = navigation_node::create($name, $url, self::TYPE_CATEGORY, null, $id);
             $id = $category->parent;
         }
         $categories[] = $this->page->navigation->get('courses');