help with pagination

I am having trouble getting pagination to work with get_categories and after hours of google searches, I have found no good documentation on this issue. Here is the code

it is set up so that you can make posts to child categories and assign them to a parent category. I was able to set the parent categories posts to only show 3. That is working fine, now I need a way to get to the 4 or or more post. I tried as you can see to set ‘paged’ => $paged in the get_categories array but the pagination still don’t show. I also tried a few plugins and the kriesi method which does work very nice on regular posts. I just can’t figure out the code to get pagination working in this issue

Any help on this issue would be greatly appreciated.