Biomolecular condensates concentrate macromolecules into discrete cellular foci without an encapsulating membrane.  Condensates are often presumed to increase enzymatic reaction rates through increased concentrations of enzymes and substrates (mass action), although this idea has not been widely tested and other mechanisms of modulation are possible.  Here we describe a synthetic system where the SUMOylation enzyme cascade is recruited into engineered condensates generated by liquid-liquid phase separation of multidomain scaffolding proteins.  SUMOylation rates can be increased up to 36-fold in these droplets compared to the surrounding bulk, depending on substrate K_M. This dependency produces substantial specificity among different substrates.  Analyses of reactions above and below the phase separation threshold lead to a quantitative model in which reactions in condensates are accelerated by mass action and by changes in substrate K_M, likely due to scaffold-induced molecular organization. Thus, condensates can modulate reaction rates both by concentrating molecules and by physically organizing them.