An exact solution of steady fully developed natural convection flow of viscous, incompressible, electrically conducting fluid in a vertical annular micro-channel with the effect of transverse magnetic field in the presence of velocity slip and temperature jump at the annular micro-channel surfaces is obtained. Exact solution is expressed in terms of modified Bessel function of the first and second kind. The solution obtained is graphically represented and the effects of radius ratio (η), Hartmann number (M), rarefaction parameter (βvKn), and fluid–wall interaction parameter (F) on the flow are investigated. During the course of numerical computations, it is found that an increase in Hartmann number leads to a decrease in the fluid velocity, volume flow rate and skin friction. Furthermore, it is found that an increase in curvature radius ratio leads to an increase in the volume flow rate.