See the schematics here:
http://www.commodore.ca/manuals/pet_sch ... _80col.gif
The keyboard port is driven on pins 1 through 10, and any key press events are returned via pins A-J. What you'll want to do is use a continuity checker between each combination of pins (or a representative sample thereof) to see if pressing keys on the keyboard produces a short (which it
should -- it's just a matrix of normally-open switches).
Looking at the schematic, there is the possibility that the 74LS145 (U11) chip might have gone bad too. If so, the PIA might be fine, but the keyboard never produces events because it never sees one of its input pins asserted low.