Although it is very untypical for a keyboard converter, I could imagine that it is a damage or a loose contact.
Usually the key codes are transmitted from the keyboard to the motherboard through a serial connection. So the only conversion the converter has to do is to translate PC/2 key codes into Amiga key codes and convert PS/2 transmission protocol into serial transmission protocol.
However, AFAIK on the A1200 all the electronics for decoding key presses are on the motherboard and the serial connection happens internally. So for the A1200 the converter has to do more. It has to translate the key codes back into matrix combinations. So if some of the matrix lines are connected loosely, a whole row of keys won't work.
Bye,
Thomas