Mr Mahamed was appointed the CEO of the Board on November 24, 2014, for a period of three years.
The activist states that under Mwongozo (the Code of Governance for State Corporations) issued jointly by the Public Service Commission and the State Corporations Advisory Committee in January 2015, CEOs are required to serve three-year terms or as otherwise provided under any other written law.
The term, according to the guidelines, is renewable once subject to performance evaluated by the board.
Through a circular dated October 23, 2010, exiting CEOs of public bodies are required to go on a six-month terminal leave pending the expiry of their contracts, and acting CEOs are to be appointed in the transition period.
Mr Omtatah said the court should uphold the rule of law by ordering Mr Mahamed out of office, and directing the government to recruit his replacement in accordance with the law.
He said Mr Mahamed ought to have been sent on terminal leave and an acting executive director appointed by June 23, 2017.